Hyderabad: Hyderabad’s hospitality sector has reported a sharp decline in the availability of commercial LPG cylinders, with several restaurants warning that the situation could lead to many temporarily shutting operations.
With Israel and the US attacking Iran and the widening conflict in West Asia, coupled with the shutdown of the Strait of Hormuz, the situation has significantly disrupted LPG supply in India.
Restaurant associations in Bengaluru and Mumbai have already declared an emergency, announcing the closure of kitchen operations by the end of the week. Hyderabad is likely to follow suit, with many restaurant owners warning the shortage could soon become a reality if the government fails to address the issue.
Siasat.com spoke to Mohammed Ayub, owner of Azebo restaurant in Tolichowki, who said his business has been severely impacted. “It is a serious situation. I am in touch with several restaurant owners, and we believe by tomorrow (Wednesday, March 11), nearly 80 per cent of operations will shut down,” he said.
Azebo offers sehri, which, according to Ayub, may discontinue. “Customers would want to eat at home rather than come to a restaurant. I can already see a dip,” he said.
Ayub’s views are echoed by Taqi, owner of Dine Hill, which has branches in Banjara Hills and Masab Tank. He said that if things go downhill, they plan to look for other alternatives to purchase LPG cylinders. “We might have to buy from black markets and pay double the rate. Normally, a 19 kg cylinder costs us anywhere between Rs 1,800 to Rs 1,900. The same cylinder will cost around Rs 3,000,” he said.
Dine Hill is famous for biryani and customised “Bahubali thalis.” Taqi said he is considering altering the menu and even shifting to charcoal and electric cooking. “We are trying our best to keep the business afloat,” he said.
Dine Hill also serves sehri. Taqi says there is stock for a week, but if the situation continues, the restaurant would be forced to stop sehri operations.
Cloud kitchens under stress
Cloud kitchens in Hyderabad are also facing the strain. These delivery-only restaurants operate without a physical dining area or storefront, focusing entirely on preparing food for online orders.
Muhammad Yusuf, owner of Biryani Souq – Take Away Kitchen, a famous cloud kitchen in Film Nagar in Jubilee Hills, said that LPG supply has decreased to less than 50 per cent. “We would get 10 cylinders. Today, we just got three. We do not know what tomorrow holds. Things are very uncertain,” he told Siasat.com.
Yusuf has a team of 55 members, all natives from other states.
Many have resonated the same sentiment that no government official has reached out to them. “No representative from the government has reached out to us. We have no clarity or update on how long this situation will last,” said a restaurant owner.
Redirecting LPG for domestic use
Industry representatives said that dispatches have slowed significantly, forcing distributors to release existing stock cautiously. The government’s prioritisation of domestic cooking gas supplies over commercial has led to a crunch for hotels and restaurants.
YS Naveen, a domestic LPG supplier in BHEL, said commercial establishments have not received cylinders for the last three days. The government has decided to prioritise domestic LPG users, hospitals and education institutions. Thus, hotels and restaurants are facing strain. So far, there is no crisis as such, but if the situation in the Middle East prolongs, supplies will be affected,” he told Siasat.com.
Several small hotels and roadside eateries serving a broader segment of the city’s population are feeling the brunt as supplies of commercial LPG cylinders dwindle. The situation has only worsened during the ongoing festive month of Ramzan.
India consumes some 31.3 million tonnes of LPG annually. As much as 87 per cent of this is in the domestic sector, ie, household kitchens, and the rest in commercial establishments such as hotels and restaurants. India imports 85 to 90 per cent of its oil and natural gas supply from West Asia.
According to The Hindu report, Gachibowli, Kukatpally and Madhapur have several paying guest (PG) and hostel services that heavily rely on commercial LPGs for the kitchen. Managers and supervisors report that the supply reduction has been sudden and significant.
“The supply has dropped drastically, by nearly 75 per cent. If we earlier ordered around 100 cylinders, we now receive barely 20 to 25. If this continues, we may struggle to cook meals for all our residents,” Lakshmi of Amulya Grand Luxury Women’s PG in Gachibowli told The Hindu.
However, Civil Supplies Department Commissioner M Stephen Raveendra told PTI that the situation in Telangana and Hyderabad is normal. “Things are going on smoothly. People should not panic. The situation is comfortable at present,” he said.
He said that 2.3 lakh cylinders are daily supplied by the Oil Marketing Companies (OMC) and urged the public not to panic. He also warned of stringent action against those found hoarding or black marketing LPG cylinders.
