New delhi: Indian restaurants are facing a crisis and are on the verge of closure due to a severe shortage of cooking gas. Restaurants, eateries, and hotels across India are warning of business disruptions that could lead to widespread closures as the war in Iran directly impacts the supply of liquefied petroleum gas (LPG). This has prompted Indian authorities to set up a special committee to consider urgent requests from the industry.
According to Thai News Agency, this fuel shortage crisis is caused by the conflict between the US, Israel, and Iran, which has disrupted maritime traffic in the Arabian Gulf and the Strait of Hormuz. In addition to driving up energy and transportation prices, it has impacted production and exports in Gulf-producing countries such as Qatar and Saudi Arabia. Qatar, in particular, the largest supplier of liquefied natural gas (LNG) to India, announced a production suspension last week following an Iranian attack in retaliation for US and Israeli actions.
India, the world's second-largest importer of liquefied petroleum oil (LPG), declared an emergency last week, ordering refineries to ramp up production primarily for domestic use. This has forced the service and restaurant industries to scramble to find sufficient supplies. Bert Mueller, founder of the Mexican restaurant chain "California Burrito," revealed that his restaurant currently has only two days' worth of cooking gas on hand and is rushing to install induction cookers in some branches to address the immediate situation.
The National Restaurant Association of India, representing over 500,000 restaurant owners, has submitted a letter to the Ministry of Food Processing Industries stating that the restaurant industry relies heavily on commercial LPG for its operations and that continued disruptions could lead to business closures. Meanwhile, the Bengaluru Hotel and Restaurant Association stated that the situation is critical, as most gas suppliers have ceased deliveries, and even restaurants with gas reserves may only have enough for 1-2 weeks.
On Monday, the Indian government announced emergency measures to prioritize gas allocation after gas imports from the Middle East were cut by more than 60 million cubic meters per day. The highest priority (100%) will be allocated to household and transportation use, followed by fertilizer plants (70%), the tea and manufacturing industries (80%), and finally small-scale and commercial industrial customers, including restaurants, which will receive 80% of the average usage over the past six months.