Restaurants and hotels across the country have warned that if gas supplies are cut off, they could shut down their businesses widely.TAG_OPEN_div_49
India is the world’s most populous country and the fourth largest buyer of liquefied natural gas (LNG).TAG_OPEN_div_47 India is also the second-largest importer of liquefied petroleum gas (LPG), the bulk of which comes from the Middle East.
The petroleum ministry said in an order on Tuesday that the ongoing conflict in the Middle East had disrupted LNG shipments through the Strait of Hormuz.TAG_OPEN_div_45 According to the ministry, the new system is aimed at ensuring equitable distribution and continuous availability of gas in priority areas.
The government has ordered households, the transport sector and LPG production to give first priority to the supply of gas.TAG_OPEN_div_43 In addition, other sectors such as fertilizer factories and tea factories will get only about 70 to 80 percent of their gas needs, depending on the availability.
To balance the supply, the supply of gas to petrochemical industries and power plants will be cut in whole or partially.TAG_OPEN_div_41
Some Indian industries have already warned that gas supply cuts have already begun, and production could be affected.TAG_OPEN_div_39 Many ceramics and tile companies have said that production could be affected due to the gas shortage.
Meanwhile, restaurants and hoteliers are more worried after another government order on Monday to give priority to LPG supply to households.TAG_OPEN_div_37
The National Restaurant Association of India (NBA) has indicated that it will stop supplying gas to restaurants following the government’s decision.TAG_OPEN_div_35 According to the organization, the restaurant industry is mainly dependent on commercial LPG for its operation, so there is a risk of widespread closure of business if there is any disruption in the supply.
The head of the Hotel Industry Association of Bengaluru, known as the technology hub of South India, P.TAG_OPEN_div_31 C. Rao also said that the situation is worrisome.
According to him, the gas supply has been disrupted and many small restaurants and hotels are left with only one to two days of stock of gas.TAG_OPEN_div_29
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