Gas Crisis Forces 20% of Hotels and Restaurants in Mumbai to Shut Down

Mumbai, March 10: The Indian Hotel and Restaurant Association (AHAR) has raised concerns over a severe shortage of commercial gas cylinders, leading to the closure of approximately 20% of hotels and restaurants in Mumbai. AHAR has written to Petroleum Minister Hardeep Singh Puri, urging for a resolution to the supply crisis. A delegation from AHAR is scheduled to meet Maharashtra’s Food and Civil Supplies Minister Chhagan Bhujbal today regarding the gas shortage.

AHAR President Vijay Shetty warned that if the supply is not restored within the next 72 hours, up to 50% of restaurants in Mumbai could shut down. The ongoing conflict between the United States, Israel, and Iran has severely disrupted tanker movements through the Strait of Hormuz, a crucial route for India’s LPG imports, leading to significant supply issues for the hospitality sector in Mumbai.

In their letter to the Petroleum Minister, AHAR stated, “Our organization represents nearly 8,000 small restaurants, permit rooms, and hotels, making us one of the largest hospitality associations in Maharashtra with 65 affiliated bodies. We understand that the current situation is beyond our control due to global geopolitical factors, but any disruption in LPG supply will have serious and immediate impacts on the entire industry. Restaurants and hotels heavily rely on LPG for their daily cooking operations, and any interruption will severely affect the livelihoods and revenues of all stakeholders.”

AHAR further emphasized the industry’s critical role in providing employment, food, and support services to millions of migrant workers and their families. Currently, around 4 million direct jobs and 16 million indirect jobs/self-employment in Maharashtra depend on this sector.

They also noted that a complete halt in PNG supply would severely impact the income of workers/self-employed individuals and disrupt essential daily services provided by restaurants and hotels. Such disruptions would also significantly affect government revenue, which relies on customers from various demographics, particularly the large working-class population in different states who depend on restaurants for their daily meals and affordable food options.

Given the unavoidable global situation, AHAR humbly requests that the industry be allowed to operate with a 25% reduction in PNG supply. However, a 100% cut or complete shutdown would make operations practically impossible. Therefore, they urge intervention to ensure the hospitality industry receives a minimum supply of PNG, allowing restaurants and hotels to operate smoothly and secure the livelihoods of their employees.

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