The Middle East conflict has triggered an acute LPG and LNG shortage. The shortage is now beginning to bite the food and beverages industry, with different metros announcing closure of restaurants within a 24-hour window.
Chennai Hotels Association President M Ravi addressed the LPG crisis and emphasised that the current situation is worrisome. "We are very sorry to say but we are going to shut down restaurants within 24 hours," he said.
Another member of the association urged the state and central government to take the issue seriously. "Because of Iran Gulf war, the short supply of gas to restaurants is alarming, they (state and central governments) need to sort out the shortage," he remarked.
He suggested that restaurants be brought into the ambit of the Essential Services Maintenance Act (ESMA) Act of 1968. The act is aimed at ensuring the uninterrupted operation of critical services by banning strikes and work stoppages.
Further, ESMA allows the government to declare certain services "essential," prohibiting worker strikes and imposing penalties like imprisonment or fines for violations.
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LPG Crisis
The 11-day-old Iran war that has disrupted the suppy of oil and gas from the Gulf to India. Fuel shipments through the Strait of Hormuz, a key chokepoint, are all but halted.
India consumes some 31.3 million tonnes of LPG annually. As much as 87% of this is in the domestic sector i.e. household kitchens, and the rest in commercial establishments such as hotels and restaurants. Of this total requirement, as much as 62% is met through imports.
The government has invoked emergency powers to redirect supplies of LPG away from industrial users to households, as it seeks to shield ordinary people from the impact of the Iran war.
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