LPG Supply To Hotels Restricted In Telangana Amid Import Disruption
Around 40,000 eateries to be affected in state, prices to rise soon
Hyderabad: LPG distributors in Telangana have restricted supplies of commercial cylinders to hotels and restaurants following an advisory from oil marketing companies amid disruptions in imports linked to the ongoing West Asian crisis.
Under the restrictions, supplies will continue to hospitals and hostels, while hotels, restaurants, clubs, catering units and canteens will face limits on commercial LPG deliveries, industry sources said.
The move is expected to affect around 40,000 hotels and cafés across Telangana, including nearly 20,000 establishments in Hyderabad.
According to sources, disruptions in LPG shipments from Gulf countries after the escalation of hostilities in West Asia since February 28 have affected supplies. Officials said that no oil vessels from the Gulf have reached the supply ports serving Telangana and Andhra Pradesh in the past week, except for one shipment from the United States.
Experts said India earlier sourced around 56 to 58 per cent of its LPG imports from Gulf countries, with shipments typically taking about seven days to arrive. Imports from the United States, however, take about 40 to 45 days.
They warned that a demand-supply gap could lead to a 25 to 30 per cent shortage of LPG in the coming days and may push up prices.
Telangana currently receives LPG supplies through the Visakhapatnam refinery, Krishnapatnam port storage facility and the Mangalore refinery.
Telangana State Hotels Association president Saddi Venkat Reddy criticised the restrictions, saying the move would severely affect the hospitality sector.
“This move by the government will push the hotel industry into a deep crisis. Hotels and cafés in Telangana have only recently recovered from the losses suffered during the Covid lockdown. In Hyderabad alone, there are around 20,000 hotels. Food is a basic necessity, and hotels play a vital role in providing this essential service,” he said.
“Hyderabad attracts large numbers of tourists as well as business travellers, with thousands of international business activities taking place in the city. All of this will be adversely affected by the government’s decision,” he added.
Telangana LPG Distributors Association president Jagan Mohan Reddy said commercial cylinder deliveries had been restricted following instructions from oil companies.
“The development on Monday indicated that, due to LPG reserve concerns, commercial cylinders will no longer be supplied to hotels and restaurants. Deliveries will now be restricted to hostels and hospitals,” he said.
He said the advisory aimed to extend the availability of LPG for domestic consumers and essential services.
“The government issued an advisory to all oil marketing companies amid the ongoing West Asia crisis, stating that the move is intended to extend domestic LPG reserves for household consumers and essential services. The advisory noted that import volumes have been restricted and the time taken for shipments to reach India has increased nearly threefold,” he added
He added that no shipments had arrived from Gulf countries in the past week, except one cargo from the US.
“Despite assurances that there is no shortage of LPG reserves, no shipments have arrived from Gulf countries over the past week, except for one consignment from the United States. Nearly 30 per cent of the world’s LPG production capacity is concentrated in the Gulf, and the ongoing conflict has affected overall supply,” he said.
The association has also urged domestic consumers to use LPG conservatively and ensure that a cylinder lasts for at least a month.
