LPG shortage hits hotels in Kerala’s Kannur; about 40 units face closure, black marketing alleged

A severe LPG shortage due to escalating conflicts in West Asia has begun to impact the hospitality industry in Kerala’s Kannur district; Nearly 40 hotels are at risk of closure as commercial cylinder supplies have virtually stopped in recent days.

The crisis forced the closure of Ghazal, a prominent hotel, and 10 more hotels of Kannur city, which were unable to procure the LPG cylinder required for daily operations.

Hotel manager Manoj Kumar said that there was no supply of gas cylinders for the last two days. “We are forced to close. Today (Friday) we only have one cylinder needed to prepare meals for more than 30 staff.” he said.

The cost of firewood has increased

Most of the staff come from other states, and if they leave, he said, it will become more difficult to run the business. He stated that the cost of firewood has increased due to the lack of gas cylinders and that the state should intervene urgently.

Hotel owners alleged that many gas utilities, especially private distributors, had sharply increased the prices of commercial cylinders due to supply shortage. They also claim that some agencies sell cylinders on the black market, which further worsens the situation for hotels and restaurants.

Niketh Balan, a hotel owner in the city, said his business requires at least three commercial rollers a day.

“We had earlier purchased a cylinder for around 1,800 Indian rupees, but now the agencies are charging more than 3,000 Indian rupees for the same cylinder,” he said, adding that he refused to buy cylinders at such inflated prices.

A tea shop owner near the old bus stand in Kannur said government officials visited his shop to check whether household cylinders were being used for commercial purposes.

He said authorities should instead monitor institutions that are allegedly exploiting the shortage of cylinders to sell them illegally.

Bupesh K., regional president of the Kerala Hotels and Restaurants Association, warned that if the situation continues, most hotels may have to close in the next two days.

He said there was no gas refilling and distributors refused to supply commercial gas.

Industry sources said the crisis could trigger a major economic impact in the region. Approximately 20,000 workers could lose their jobs if hotels were closed, affecting the livelihoods of many families dependent on the industry.

Hotels in Kannur typically consume between two and six cylinders of LPG per day, making uninterrupted supply crucial for their operations. As supply is disrupted and prices skyrocket, many businesses have already begun making changes to menus and cooking practices to cope with the crisis.

Hotel owners also stated that many migrant workers meet their daily food needs from small restaurants and called on the government to intervene to prevent black marketeering and ensure adequate LPG supply to the sector.

Kannur District Supply Officer KN Bindu said that there will be no shortage of domestic cylinders until the end of March and the companies have assured uninterrupted supply.

However, considering the situation, the supply of commercial cylinders was restricted. Taluk Supply Officers have been directed to inspect agency warehouses and prevent illegal sale of gas cylinders.