Karnataka Allocates 20% LPG Supply to Hotels

The Government of Karnataka has declared that 20 % of the total daily commercial LPG supply in the state shall be distributed immediately to hotels and other commercial properties to ensure that a dire supply crunch that has been crippling the hospitality industry of the state in recent weeks is alleviated.

Food and Civil Supplies Minister K. H. Muniyappa announced that now hotels, restaurants, industrial canteens, and dhabas would receive about 10,000 commercial LPG cylinders daily after discussions with the oil marketing companies. The relocation will occur when companies in Bengaluru and other cities are suffering as a result of the hitches in operations due to lack of fuel.

Key Highlights

• Karnataka allocates 20% LPG supply to support hotels
• Hospitality sector faces Rs 150 crore losses amid shortage
• Supply expected to recover to 50% of normal levels

The scarcity, which is associated with supply chain breakdowns experienced in the global market as the West Asian war goes on, has had a serious effect on routine operations. The hotels which are known to use about 45,000 cylinders per day have had to reduce services because of limited supply.

The government has also provided expansionary allocation structure as endorsed by the Centre, which guarantees allocation between the significant sectors in terms of education, public sector undertakings, agriculture and emergency services. Although the recent intervention is likely to restore the supply levels to the approximately 50% of the normal demand level, the stakeholders in the industry still struggle with financial pressure.

Also Read: MP Hoteliers Seek Stable LPG & PNG Supply Amid Price Hikes

The authorities have been pressurizing the industries to respond to the limited supply conditions but also promote long-term shifts to alternative energy products like solar and biomass. Moreover, the consumers have been encouraged to embrace piped gas connections via GAIL, which in the long-term, the state is seeking to lessen the reliance on LPG.

Data, Statistics, Quotes, Figures

• Daily LPG allocation to hotels increased to 10,000 cylinders
• Total state allocation approved: 16,105 cylinders per day
• Average hotel demand: 45,000 cylinders daily
• Earlier supply to hotels: ~1,000 cylinders per day
• Estimated industry losses: ₹150 crore in three weeks

K. H. Muniyappa: “About 10,000 commercial cylinders can be supplied to the hotel industry.”

Sector-wise Allocation:

• Educational institutions: 4,200 cylinders
• Public sector units: 1,200 cylinders
• Agriculture: 500 cylinders
• Emergency reserve: 200 cylinders

P. C. Rao, President, Bangalore Hotel Association: “The LPG shortage has disrupted operations, causing losses of about ₹50 crore every week.”

Sachin Shankar Magadum, Judge, Karnataka High Court: “Government is doing their best and courts should not get into this in a war-like situation.”