Kerala: Most Hotels Might Shut Down In 2-3 Days; Restaurant Body Flags Gas Shortage Crisis

Kerala Working President of the hotel and restaurant association warned that 50% of Kerala's hotels might shut down in 2-3 days due to the severe gas shortage.

Kerala commercial fuel shortage Written by
Kerala: Most Hotels Might Shut Down In 2-3 Days; Restaurant Body Flags Gas Shortage Crisis

Kerala: Most Hotels Might Shut Down In 2-3 Days; Restaurant Body Flags Gas Shortage Crisis

Kochi, Kerala: Most of the hotels and restaurants in Kerala are facing severe shortage of Liquified Petroleum Gas (LPG), with owners and associations flagging the alarm. Many hotels have exhausted their stocks, forcing them to cease operations.

Asees Moosa, Working Pesident, Kerala Hotel and Restaurant Association (KHRA), called the situation “pathetic”. Moosa warned that 50% of Kerala’s hotels might shut down in 2-3 days due to the gas scarcity, with the rest likely to close in the following days once their existing stocks run out.

Read Also: Supply Disruption Hits Indian Cities: Hotels ‘Concerned’ Over LPG Cylinder Shortages

‘Most hotels use separate cylinders for different dishes, and they can not operate smoothly with limited availability,’ Asees pointed out. When asked about government measures, he said the central government should intervene in the issue as the state government has limited capacity in addressing the crisis.

“We have no options or plan to operate hotels and restaurants without gas; it is either shut down or depending alternatives like firewood, which is not easy to arrange and operate. The government just hiked gas prices last week, but availability remains a bigger issue. Gas is is available even if we’re willing to pay more,” Moosa told Timeline.

Read Also: Saudi, UAE, Kuwait, Iraq Cut Oil Production By 6.7 Million Barrels Per Day Amid Global Fuel Concerns

Speaking to Timeline, a Bharat Gas representative said commercial gas is not arriving, and all available cylinders were cleared in the past two days. “Gas did not arrive yesterday or today, and it is not just Bharat Gas, but all commercial gas deliveries have stopped across India,” he added.

Raieese, Treasurer of Ernakulam Cluster, Kerala Hotel and Restaurant Association, says there have been no gas available for the past three days. ‘If the situation continues, most hotels will shut down soon,’ he said, highlighting that large cylinder supplies have completely ceased. However, restaurants which have adequate stock will remain intact. Chef Pillai said they have stock and did not face issues while booking.

Notably, some homemakers from Kozhikode dil have reported trouble booking online, sparking fears that the gas shortage might impact domestic gas supply too.

Read Also: Fuel Conserving Measure: Bangladesh Shuts Down Universities Amid Energy Crisis Over Iran-US-Israel Conflict

Earlier, several Indian companies such as Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (BPCL) has rejected fuel shortage claims, assuring that India has sufficient fuel stocks, and citizens are assured there is no need for concern.

As the West Asian conflict hits key energy facilities, impacting the oil supply market, fuel shortage reports have started circulating on social media. Several major oil-producing countries — Saudi Arabia, United Arab Emirates, Kuwait and Iraq has significantly reduced oil production.

On Tuesday, India invoked the Essential Commodities Act, 1955, allowing it to divert natural gas to certain priority sectors due to the supply chain disruption.

Supply disruptions through the Strait of Hormuz transit route, which represents around 25% of global seaborne oil trade, have affected logistics, causing crude oil prices to surge past $110 per barrel, biggest jump since 2020. Long queues for fuel stations in Spain, and Bangladesh  and Pakistan’s decision to shut down universities to limit fuel consumption, have fueled fears of the potential gas shortage.