The Centre has invoked emergency measures to divert gas supplies from non-priority sectors to key users after the disruption of LNG shipments through the Strait of Hormuz, a government notification said even as reports from cities multiple cities cited hoteliers curtailing items on the menu – such as pooris – that need a lot of fuel to prepare and some comparing the situation to the Covid-induced lockdowns.
India meets half of its 195 million standard cubic metres per day (mmscmd) of gas consumption through imports. The country was getting about 60 mmscmd gas from the Middle East prior to the closure of the Strait of Hormuz and force majeure by Qatar.
Depending on the availability of gas, India will be supplying the fuel in proportion to the average use over the last six months by priority sectors, the notification, issued late on Monday, said.
The top priority is to supply 100 per cent natural gas to households and automobiles for transport fuel. Second are fertiliser plants that will get 70 per cent gas supplies. Supplies to tea industries, manufacturing and other industrial consumers would be maintained at 80 per cent, the government said. Small industrial and commercial clients, the fourth in order of priority, will get 80 per cent of the supplies.
Restaurants, hotels in distress
Restaurants and hotels across India warned of disruptions and possible shutdowns on Tuesday
"We have LPG stock for two days. We are working on contingencies," said Bert Mueller, founder of Mexican food chain California Burrito, with more than 100 stores spanning Bengaluru and Chennai in the south to Delhi and Noida in the north.
"We are conserving gas and installing induction stoves at certain stores."
"The restaurant industry is predominantly dependent on commercial LPG for its operations," the National Restaurant Association of India, which represents more than half a million restaurants, told the food processing ministry on Monday.
"Any disruption therein will lead to a catastrophic closure," the NRAI said in a letter, while another body, the Federation of Hotel & Restaurant Associations of India, also sought government help.
Several restaurants said deliveries had dropped sharply, fanning that kitchens will come to a halt if the situation is not resolved.
"One of our restaurants did not receive gas cylinders today," Manish V Shetty, who runs the Udupi Food Hub chain of restaurants in Bengaluru, told Reuters.
"Thankfully, one of our older vendors helped us," he added, because the chain offers immediate payment, rather than credit terms of a week or month. "We're also seeing a spike in the price of the sunflower oil that we use for cooking."
Few restaurants stockpile LPG cylinders, because of safety concerns, relying instead on frequent replacement, said Veerendra Kamat, secretary of the Bengaluru Hotels Association.
"It's a very grave situation. Most of the (gas) companies have stopped supplying," said Ananth Narayan of the NRAI's Bengaluru branch, adding that even those restaurants that do store gas could run out within a week or two.
Several other hotels and restaurants in Bangalore said they continued to operate under strain with the commercial gas cylinders they already have and curbs on items like poori that consume more fuel.
P.C. Rao, honorary president, Bangalore Hotels Association, told PTI that the decision of closure depends on individual hotels. They will operate as long as they have gas. If there is no gas available, then there is no other option. Then it will automatically close.
"Till the last drop of gas available, we will cook and serve," he said.
Asked if there would be a complete shutdown of hotels and restaurants on Tuesday, he said, "No, no. Some people [hotels] still have stock. Some others are waiting, hoping there might be some supply. It is not possible to arrange any alternative immediately."
"Let us see. We are hoping for the best, because if we close it will be difficult for us and for customers as well," he said.
Rao said that some hotels have stopped preparing items like poori because they consume a lot of oil and gas.
"We are trying to save gas. For example, if we have five cylinders and normally need three cylinders per day, we try to stretch those five cylinders to last four days. We are making such efforts," he said.
Another hotelier, Chandrashekhar Hebbar, said the situation has become serious.
"It has reached that level now -- to the point where closure is being considered. For now, everyone is trying to manage by reducing gas consumption and adjusting things, but that can be done only for a day or two. After that, it will not be possible," Hebbar told PTI.
He said several items were already being curtailed to conserve gas. "We have stopped serving some items. Things like poori have been controlled. The government must take immediate action on this," he added.
"We have a lot of catering work also, especially with many weddings happening now. All the orders have already been taken, and there is no alternative at present," he said.
Commercial gas cylinder supply has completely stopped in Mumbai as well, reports said.
Same story in Tamil Nadu
Restaurants across Tamil Nadu expect their stock of LPG to last only for one or two days.
"It is like a second Covid-19-enforced lockdown for us,” the chairman of a popular restaurant chain told PTI on condition of anonymity. “We are cutting down on the usage of LPG cylinders. We have reduced the number of food items. For dosa, tea or coffee, the stove should be receiving LPG supply non-stop. We have cut the number of items now and are providing food only in limited numbers,"
"We expect to run for one or two days with existing stock. If there is no supply of the commercial LPG cylinders, we have no other go than to close down operations.”
Sri Ananda's, another popular hotel in Chennai, had displayed in the menu on Tuesday that due to a lack of supply of commercial LPG cylinders, food items have been largely reduced to limited numbers.
"All these days, we were operating without any crisis in LPG cylinder supply. Today, we have cut down on the list of food items offered to reduce the usage of LPG cylinders. We have stopped preparing fried rice, side dishes, and appam as these items require more LPG. We do not know how long this (supply crisis) will continue," an official said.
The Tamil Nadu Hotels Association, a body representing the hotels and restaurants in the State, on March 7, appealed to the Centre to withdraw its order instructing oil marketing companies to suspend commercial LPG cylinders.
On March 6, the government invoked, sparingly used emergency powers to direct oil refineries to ramp up LPG production to increase the availability of domestic cooking gas to avoid potential disruptions due to the widening West Asia conflict.
On March 7, the prices of domestic LPG and commercial cylinders were hiked by Rs 60 and Rs 114.5, respectively.
Responding to a query about reports from Rajkot claiming that hotels and restaurants are getting messages about restrictions on commercial gas cylinders, Gujarat energy minister Rushikesh Patel denied any such directive.
"There is nothing like that," the minister asserted.
"As far as commercial gas cylinders are concerned, there is currently no cut or restriction on them," he said.
Earlier on March 6, an industry representative told PTI that around 100 ceramic manufacturing units in Gujarat's Morbi have shut down due to disruption in gas supplies amid the ongoing West Asia conflict.
Puducherry hotels shift to cooking low-fuel menus
Some of the hotels in Puducherry have started shifting to low-fuel menus as the shortage of commercial LPG cylinders has disrupted their service schedule. A hotel owner told PTI on Tuesday that they had introduced stringency measures to manage the current shortage. "We are not getting the refills for commercial sector and we have been asked to prioritise supply for the domestic consumers only," the dealer said.
Odisha hoteliers urge minister for smooth LPG supply
The Hotel & Restaurant Association of Odisha (HRAO) on Tuesday sought Petroleum Minister Hardeep Singh Puri's help for smooth provisions of LPG to hotels and restaurants, citing serious operational challenges for the hospitality industry.
"The sudden disruption in supply has severely affected food preparation and service in many establishments," said the association in its memorandum to Puri. If the situation continues, it may lead to closure of hotel operations, cancellation of bookings, and severe inconvenience to tourists and visitors, said HRAO chairman J K Mohanty.