Indian hospitality sector feels heat as US-Iran tensions disrupt LPG supply

With the US-Iran conflict disrupting global energy supply chains, Indian hotels are increasingly feeling the strain as shortages of commercial LPG is creating operational uncertainty across the sector.

“There has been some disruption in the supply of commercial LPG cylinders over the past few days. Deliveries that were usually scheduled on time are now delayed, and the availability from distributors has become less predictable. Since the hospitality industry heavily relies on commercial LPG, even short disruptions can create significant operational uncertainty,” said Arindam C Bahel, general manager of The Fern Brentwood Resort Mussoorie.

Hotels in India are turning to electric appliances such as induction cooktops as disruptions in commercial LPG supply affect kitchen operations

Hospitality associations including the Federation of Hotel & Restaurant Associations of India (FHRAI) and Hotel And Restaurant Association (Western India) HRAWI have issued advisories to its members to adopt practical operational measures to manage the situation including conserving available fuel, temporarily rationalising menus to reduce high gas consumption items, integrating electric appliances such as induction cooktops and convection ovens where feasible and adjusting operating hours to focus on peak service periods.

“We strongly urge establishments to avoid panic buying or hoarding of LPG cylinders as such actions could further destabilise the market and invite regulatory scrutiny,” said Pradeep Shetty, vice president, FHRAI and spokesperson, HRAWI.

Last week, the Indian government announced that 20 per cent of the average monthly commercial LPG requirement will be allocated by oil marketing companies in coordination with the state governments so that there is no hoarding or black marketing.

“If there is a prolonged shortage, it could affect kitchen planning and meal preparation schedules, particularly in a wellness retreat like ours where meals are prepared fresh and tailored to individual guest requirements,” noted Abhilash Ramesh, executive director Kairali Ayurvedic Group.

“That said, we maintain contingency measures and buffer inventory to ensure guest meal services continue smoothly and without compromising quality.”

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