NEW DELHI — Amid a nationwide shortage of commercial gas cylinders triggered by the ongoing Iran-Israel conflict, the Central Government has announced a significant policy shift to stabilize the hospitality sector. The Ministry of Petroleum and Natural Gas has decided to allocate a 20% supply quota specifically for commercial LPG to provide relief to hotels and restaurants currently facing a fuel crisis.
The decision follows a high-level meeting involving Petroleum Minister Hardeep Singh Puri and senior ministry officials, where the impact of the war on the tourism and food service industries was evaluated.
Key Highlights of the New Supply Policy
-
20% Guaranteed Supply: Registered commercial consumers are now entitled to receive up to 20% of their total demand as a priority allocation.
-
Authorized Distribution: Executive Directors of the three major state-run oil companies (IOCL, BPCL, and HPCL), in coordination with state governments, will determine which specific regions and establishments receive priority within this 20% bracket.
-
Strict Eligibility: This facility is exclusively available to establishments with valid registered commercial cylinder connections.
Impact on the Restaurant Industry
The disruption in energy supplies from West Asia has pushed many restaurants to the brink of closure.
-
Menu Adjustments: To conserve gas, several hotels and restaurants have already limited their menus, removing dishes that require long cooking times.
-
NRAI Appeal: The National Restaurant Association of India (NRAI) had written to the Ministry requesting that commercial cylinders be included under the Essential Commodities Act to prevent black marketing and ensure a steady daily supply of at least 1-2 cylinders.
Economic Context: The West Asia Conflict
The primary cause of the shortage is the functional blockage of the Strait of Hormuz and the resulting volatility in global energy markets. With many establishments facing a 20-to-25-day wait for refills, this 20% quota is being viewed as a vital “lifeline” to prevent a total collapse of the food and tourism sectors.
