LPG Supply To Hotels Restricted In Telangana Amid Import Disruption
Hyderabad: LPG distributors in Telangana have restricted the supply of commercial cylinders to hotels and restaurants on the advice of oil marketing companies due to disruptions in imports due to the ongoing West Asian crisis.
Industry sources said that supplies to hospitals and hostels will continue within the scope of the restrictions, while hotels, restaurants, clubs, catering units and canteens will face limitations in commercial LPG delivery.
The move is expected to affect around 40,000 hotels and cafes in Telangana, including around 20,000 establishments in Hyderabad.
According to sources, disruptions in LPG shipments from Gulf countries following the increasing hostilities in West Asia since February 28 have affected the supply. Except for a shipment from the US last week, no oil ship from the Gulf has reached supply ports serving Telangana and Andhra Pradesh, officials said.
India previously sourced around 56 to 58 per cent of its LPG imports from Gulf countries and shipments usually took around seven days to arrive, experts said. But importing from the United States takes about 40 to 45 days.
They warned that the supply-demand gap could lead to a 25 to 30 percent shortage of LPG in the coming days and increase prices.
Telangana currently receives LPG supplies through Visakhapatnam refinery, Krishnapatnam port storage facility and Mangalore refinery.
Saddi Venkat Reddy, president of the Telangana State Hoteliers Association, criticized the restrictions, saying that the move will severely impact the hospitality industry.
“This move by the government will push the hotel industry into a deep crisis. Hotels and cafes in Telangana have only recently recovered from the losses incurred during the Covid lockdown. There are around 20,000 hotels in Hyderabad alone. Food is a basic need and hotels play a vital role in providing this basic service,” he said.
“Hyderabad attracts a large number of tourists as well as business travelers with thousands of international business activities taking place in the city. All these will be negatively affected by the government’s decision,” he added.
Telangana LPG Distributors Association president Jagan Mohan Reddy said commercial cylinder deliveries were restricted as per the instructions of oil companies.
“Monday’s development showed that commercial cylinders will no longer be delivered to hotels and restaurants due to LPG reserve concerns. Deliveries will now be limited to hostels and hospitals,” he said.
He said the recommendation is aimed at expanding the availability of LPG for domestic consumers and essential services.
“The government has issued an advisory to all oil marketing companies amid the ongoing West Asian crisis, stating that the move is aimed at expanding domestic LPG reserves for household consumers and essential services. The advisory stated that import volumes have been restricted and the time taken for shipments to reach India has increased almost threefold.”
He added that no shipment came from the Gulf countries last week, except for one cargo from the USA.
“Despite assurances that there is no shortage of LPG reserves, no shipments arrived from the Gulf countries last week, except for one shipment from the USA. Almost 30 percent of the world’s LPG production capacity is concentrated in the Gulf, and the ongoing conflict has affected the overall supply,” he said.
The association also called on domestic consumers to use LPG economically and ensure that one cylinder lasts at least a month.
