Hotel associations in Tamil Nadu and Karnataka have requested the Central government to ensure an uninterrupted supply of liquefied petroleum gas (LPG) amid disruptions caused by the ongoing West Asia conflict affecting global natural gas supply chains.
In Karnataka, hotel leaders are experiencing difficulties with the reduced availability of commercial LPG cylinders. Santosh Malnad, Director of the Hotel Owners Association, told ANI, “We are forcing the Central government to bring the hotels under the Essential Commodities section. The government has ordered the oil companies to give commercial cylinders to health, agriculture, and education. How can hotel industry survive without cylinders? It is the main source for us.” He added, “They should ensure the free flow of cylinders to hotel industry, this is a very strong issue, so please interfere in this matter and make sure we get free flow of commercial cylinders. The government has cancelled the discount too, which was Rs 150 on 19 KG, and they also hiked the price of Rs 145.”
The Tamil Nadu Traders Union Federation has expressed concern over the ongoing LPG shortage impacting hotels and small food businesses across the state. Vikramaraja Raja stated that the traders’ body has urged M. K. Stalin to intervene and request the Government of India to resolve the gas supply shortage promptly. He noted that small traders and small hotels will feel the effects more sharply than larger hotels. Some eateries in Chennai and elsewhere in Tamil Nadu have already begun reducing menu items while operating with existing stock.
Domestic LPG cylinders continue to be supplied to households without interruption, with authorities extending the booking period for new cylinders. RK Gupta, National Vice President of the LPG Association, said, “According to the oil companies, there is no shortage in supply. Commercial LPG cylinders have not been issued since yesterday, but an exemption has been given to hospitals and educational institutions… There is no shortage in the supply of domestic LPG.”
On Tuesday, the Central government announced new regulations prioritising the supply of natural gas, including LPG and piped natural gas (PNG), nationwide due to shortages caused by the global supply chain disruption amid the West Asia conflict. The government stated, “The Central Government, in order to ensure equitable distribution and continued availability of natural gas for priority sectors, considers it necessary to regulate production, sector-wise allocation and diversion of natural gas supplies, distribution, disposal, acquisition, use or consumption of natural gas, including LNG and re-gassified-LNG.”
The official notification added, “The Central Government has assessed that the ongoing conflict in the Middle East has resulted in the ‘disruption of liquefied natural gas shipments through the Strait of Hormuz’, which has led to suppliers invoking force majeure clause which would entail diversion of natural gas to the priority sectors.”

