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Essential Commodities Act Invoked as LPG Shortage Hits Hotels

The disruption comes days after a hike in LPG prices and amid rising global oil prices linked to instability in the Middle East.

Sentinel Digital Desk

Guwahati: The impact of the ongoing tensions involving Iran, Israel, and the United States has begun to reach India, with hotel and restaurant associations across several cities reporting shortages of commercial LPG cylinders.

The disruption comes days after a hike in LPG prices and amid rising global oil prices linked to instability in the Middle East.

According to reports, hotel associations in Bengaluru and Chennai have flagged serious disruptions in the supply of commercial LPG cylinders to restaurants. They warned that eateries in the two cities could be forced to halt operations if supply is not restored quickly.

The crisis is being linked to growing tensions around the Strait of Hormuz, a crucial global shipping route through which nearly one-fifth of the world’s oil and gas supplies pass. Any disruption in this lane can impact international energy markets and LPG supply chains.

The Chennai Hotels Association and the Bangalore Hotels Association said the shortage could affect thousands who depend on restaurants for daily meals, including students, office workers and medical professionals.

The Chennai Hotels Association and the Bangalore Hotels Association said the shortage could affect thousands who depend on restaurants for daily meals, including students, office workers and medical professionals.

They also warned that banquet bookings, catering to IT parks and food supply to college hostels could be impacted.

The National Restaurant Association of India has urged the Government of India to intervene, warning that prolonged disruption could lead to a “catastrophic closure” of restaurants in several cities.

Amid these concerns, the Government of India has invoked the Essential Commodities Act, 1955 to regulate the availability and distribution of petroleum products and natural gas across the country.

The move allows authorities to monitor supplies, prevent hoarding and ensure equitable distribution if global energy disruptions begin to affect domestic markets.

Besides Bengaluru and Chennai, restaurants in Gurugram and Mumbai have also reported shortages of commercial LPG cylinders, with some establishments exploring alternative arrangements to keep their kitchens operational.