LPG Shortage: Restaurants Across Kerala Face Mass Shutdown

A severe disruption in the supply of commercial liquefied petroleum gas (LPG) has thrown Kerala's hospitality sector into turmoil, with thousands of hotels and restaurants across the state facing an imminent shutdown. The crisis, triggered by geopolitical tensions affecting shipping lanes, has led major suppliers to halt refills, leaving businesses with limited fuel to operate.

Major public sector undertakings, including Indian Oil Corporation (IOC) and Bharat Petroleum (BPCL), have ceased refilling commercial cylinders. Hindustan Petroleum (HPCL) is maintaining only a minimal supply. This decision follows a directive from the Union government on March 8 to prioritise essential services like hospitals, effectively cutting off commercial establishments. IOC, which manages 52 per cent of the state's LPG supply, assured that domestic cooking gas stocks are sufficient, though consumers have reported difficulties in booking refills, according to a report in Mathrubhumi.

The impact was immediate and severe. On Wednesday alone, an estimated 20 per cent of hotels in the state remained shut. Industry bodies warn that the situation will worsen dramatically. "This crisis, brought on by the conflict in West Asia, has caught us all off guard," K T Rahim, Ernakulam district secretary of the Kerala Hotel and Restaurant Association (KHRA), told The New Indian Express. "For years, there hadn't been a dearth in the supply of LPG in the state, and many outlets had gotten accustomed to buying cylinders daily. So, when the supply was cut, many had no option but to shut down."

KHRA officials now estimate that around 70 per cent of all restaurants and hotels could down their shutters by this weekend. "Those establishments currently running may only have gas to last maybe two or three more days," said Azees Moosa, KHRA working president. He painted an even grimmer picture for rural areas, where supply was already erratic, predicting that "all (100%) hotels and restaurants will be shut in a matter of days."

With the official supply chain severed, establishments are scrambling for alternatives, but options are limited. The crisis has spawned a black market, with complaints emerging of private agencies selling cylinders at double the market price. N Abdul Razak, KHRA general secretary, alleged a sharp spike in prices. "The prices were Rs 80/kg two weeks ago. Now, it hovers in the Rs 130 to Rs 140 range," he said. However, even this expensive, unofficial supply is reportedly drying up.

In response, hotels and restaurants are being forced to adapt. The KHRA has advised outlets to make considerable changes to their menus and operating hours. Many have already done so voluntarily.

A staff member of the Avenue Group confirmed that one of their large hotels has closed its restaurant entirely, adding, "A revision of the menu is also on the cards as we are now leaning heavily on combi-ovens and induction cooking." A five-star hotel in Kochi has stopped taking orders for big functions, and while accommodating existing bookings, they are in discussions with clients to modify menus. Even popular chains like Saravana Bhavan are feeling the heat, with an owner stating, "We have stopped live fry items like dosas, and there are revisions to our timings too."

According to Mr Rahim, items like shawarma, noodles, and Chinese dishes are likely to be the first to be cut from menus. "Most small outlets will soon rely on food that could be made in bulk, such as biryani," he explained. Hotels are also considering doing away with buffets in favour of à la carte service.

Interestingly, the KHRA has explicitly advised its members against reverting to firewood, a traditional alternative. "That isn't compatible with current safety standards, and hence, we don't encourage that," Mr Abdul Razak emphasised, though he conceded that enforcement may be difficult.

This reluctance to use firewood stands in contrast to the government's approach to the school midday meal scheme. With schools also facing a shortage-many have stocks for only one or two more days-the Pradhan Mantri Poshan Shakti Nirman (PM POSHAN) scheme has temporarily allowed the use of firewood to prevent disruption of meals for the remaining 12-13 school days this month. The Public Education Directorate has instructed schools to use firewood properly and avoid wastage, with any extra costs to be addressed later.

As the crisis deepens, there are warnings of a proliferation of illegal street eateries, or thattukadas, which often use domestic gas cylinders and bypass safety protocols. For the general public, the scale of the problem is only just becoming apparent. "Many are unaware of the problem," Mr Rahim noted. "But as more restaurants shut, the crisis at hand would feel more real, especially in a city like Kochi which sees a lot of young migrant crowd." With no immediate solution in sight, Kerala's vibrant food culture faces its toughest test in years.