Mumbai Hotels Face LPG Shortages
Commercial LPG shortages tied to the Iran conflict have shut down 20% of Mumbai hotels, highlighting supply chain risks for perishable goods https://x.com/ThePuneMirror/status/2031276675812700212.
The Mumbai hotel industry is facing significant disruptions due to a shortage of commercial LPG cylinders, with about 20% of hotels and restaurants already shut down. The Hotel and Restaurant Association (AHAR) warns that if supplies aren't quickly restored, up to 50% of Mumbai hotels could close within two days. This shortage stems from the escalating conflict in West Asia, which has disrupted energy shipments, and a revised government policy prioritizing LPG supply for households. The government order directs public sector oil companies to prioritize domestic consumers, impacting hotels and restaurants that rely on piped natural gas. Similar LPG supply disruptions are being reported in other Indian cities like Pune, Aurangabad, Nagpur, Delhi, and Chennai. The Federation of Hotel and Restaurant Association of India (FHRAI) is urging the government to restore uninterrupted commercial LPG supply to avoid widespread closures. Some hotels are operating with limited stock, reducing menu items to conserve gas. The crisis highlights India's vulnerability to global energy shocks, given that it imports about 62% of its LPG.