Restaurants and hotels across India warned of disruptions and possible shutdowns, as the Iran conflict constricts supplies of cooking gas, prompting authorities to set up a panel to review industry requests.
The fuel shortage comes as the US-Israel attacks on Iran has halted ship traffic in the Gulf and the Strait of Hormuz, driving up energy prices and transport costs, hitting exports and output from Gulf producers, such as Qatar and Saudi Arabia.
India, the world’s second-biggest importer of liquefied petroleum gas (LPG), invoked emergency powers last week to order refiners to crank up production for domestic use, leaving the hospitality industry struggling to get sufficient supply.
“We have LPG stock for two days. We are working on contingencies,” said Bert Mueller, founder of Mexican food chain California Burrito, with more than 100 stores across India.
“We are conserving gas and installing induction stoves at certain stores.”
“The restaurant industry is predominantly dependent on commercial LPG for its operations,” the National Restaurant Association of India, which represents more than half a million restaurants, told the food processing ministry on Monday.
Indian companies have raised LPG prices for the first time in about a year, as the conflict boosts prices of the imports that fill two-thirds of annual consumption.
India’s largest supplier of LNG, Qatar, halted production last week after Iran’s strikes on Gulf countries in retaliation for Israeli and US strikes against it.
In the southern tech hub of Bengaluru, several restaurants said deliveries had dropped sharply, fanning fears that kitchens will come to a halt if the situation is not resolved. — Reuters
