Middle East conflict hits LPG supplies to India’s hospitality sector

Core Insights - The ongoing conflict in Iran is causing tightening supplies of commercial liquefied petroleum gas (LPG) in major Indian cities, impacting the hospitality sector [1] - Recent price increases for LPG cylinders have exacerbated supply concerns, with domestic LPG prices rising by Rs60 ($0.65) and commercial cylinders by Rs115 ($1.25) [2] Group 1: Impact on Hospitality Sector - Hotel and restaurant associations in Bengaluru, Chennai, and Mumbai are reporting irregular deliveries of commercial LPG cylinders, affecting kitchen operations and food services [1][3] - The Bangalore Hotels Association has urged authorities to ensure fuel availability for essential services, indicating that operations are likely to be affected from March 10 [3] - The National Restaurant Association of India (NRAI) has communicated with the Indian Petroleum and Natural Gas Minister regarding the worsening supply situation, despite government assurances of no ban on commercial LPG supply [4][5] Group 2: Government Response - The Ministry of Petroleum & Natural Gas has directed domestic refineries to increase LPG output, with additional volumes allocated for the local market [5] - To prevent speculative buying, the ministry has implemented a 25-day minimum interval between LPG bookings to curb hoarding and black marketing [6] - A committee has been established to review requests for LPG supplies specifically for restaurants, hotels, and other industries [6]