Mumbai’s restaurants and hotels are facing severe disruptions as the ongoing LPG shortage threatens operations and could force temporary closures.
Mumbai Hotels Face Crisis Amid LPG Shortage (File Photo)
LPG Shortage Crisis: AHAR, which is the Mumbai Hotels Association, announced on Tuesday that due to the problems being faced with the supply of LPG, 20% of hotels in the city have closed their operations temporarily. The association has also announced that if the situation persists, then the number of hotels that could be closed could be as many as 50% in the next two to three days.
According to the hotels association, the number of days that hotels can operate depends on the quantity of LPG that they have in stock. The association has also announced that no decision has been taken about the hotels being closed, and it is up to the hotel owners to decide whether they want to keep the hotels open or close them temporarily.
The LPG crisis has emerged at a time when there is pressure on the global energy markets because of the conflicts in West Asia.
Shortages of commercial LPG have begun to affect restaurants in the last two days across the country, including Mumbai. Associations have said that if the shortage continues, thousands of restaurants will be affected.
In response to the situation, the Ministry of Oil has formed a committee to look into the supply disruption of LPG to hotels and restaurants. This committee is made up of three executive directors from Oil Marketing Companies (OMCs).
The ministry has assured the public that the country has sufficient fuel supplies and has asked refineries to increase the production of LPG by utilizing petrochemical supplies. Moreover, the LPG refill booking period has been extended from 21 days to 25 days to prevent hoarding and black marketing.
“In light of the current geopolitical disturbances in the fuel supply and the constraints in the LPG supply, the ministry has issued orders to the oil refineries for increasing LPG production and using the additional LPG produced for domestic LPG usage,” the ministry said.
Domestic LPG usage has been prioritized, and the extended period of 25 days for inter-booking is for fair distribution of LPG. Imported LPG for non-domestic usage is now being utilized for essential services like hospitals and educational institutions.
The hospitality industry is also on the lookout as the operations in the future are entirely dependent on the stock of LPG available at the specific location. The owners of hotels and restaurants are still monitoring the situation and are making independent decisions regarding the operations.
