Hotels and restaurants in Chennai are facing a severe crisis due to disruption in supply of commercial LPG cylinders, with the city's hotel association warning that many establishments may be forced to shut down if the situation continues.
In a letter addressed to Prime Minister Narendra Modi on March 9, the Chennai Hotels Association requested urgent intervention to ensure uninterrupted supply of commercial LPG to the food industry. The association said the shortage had already begun affecting restaurants and related services.
In the letter, the association explained that the food industry functions continuously and supports several sectors that rely on regular food supply. It stated, "We request you to please represent our case on an urgent basis, as the food industry works on a 24 x 7 basis for many hospitals who require the food to be supplied on time besides IT Parks, students at college hostels, train and business travellers will all be affected, if the supply of commercial LPG is hindered."
ALSO READ: Mumbai Hit By LPG Supply Disruptions Amid Iran War — Check New Rule On Refill Booking
The letter also pointed out that several scheduled events could be affected due to the shortage. It said, "There are also banquet bookings undertaken by many star hotels and restaurants which will also be affected."
The association further noted that a prolonged shortage of LPG cylinders could impact a large section of the public across the state. It said, "The short supply of commercial LPG to the food industry will also hinder the dependence of the large public across Tamil Nadu."
The association urged the government to treat the matter urgently.
In a post on X, the association tagged the Tamil Nadu Chief Minister and Deputy Chief Minister while highlighting the worsening situation.
In the post, the association stated, "The situation has now become even more critical. Commercial LPG distributors have completely stopped supplying cylinders, stating that they have no stock available. As a result, many restaurants are forced to shut down."
This comes hours after the Bangalore Hotels Association announced that the supply of commercial gas cylinders had been stopped, which had created a major crisis for the hotel industry.
ALSO READ: Will Bengaluru Hotels Remain Stay Shut Tomorrow Due To Commercial Gas Supply Halt?
Although the association initially said hotels would remain shut from Tuesday, its president later clarified that establishments would continue to operate for as long as they could.
Not just Bengaluru and Chennai, the gas supply crunch has spread to hotels across other cities too.
Government sources told NDTV Profit on Monday that several countries including Algeria, Australia, Canada, Norway and the UAE have approached India to sell LPG.
In another development, on Saturday, the price of domestic cooking gas LPG was increased by Rs 60 per cylinder. This was the second increase in less than a year after prices were raised by Rs 50 in April last year.
ALSO READ: Government Invokes Emergency Measures To Tackle Gas Supply Shortage: Check Sector-Wise Allocation
Government officials told NDTV Profit that the increase in commercial LPG cylinder prices is linked to a rise in Saudi Arabia's crude prices, which have increased significantly over the past few months.
Officials also stated that there would be no increase in the retail prices of petrol and diesel. According to them, the government had already reduced central excise on petrol and diesel three times, in November 2021, May 2022 and March 2024.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.