The recent disruptions to the shipping traffic in the Strait of Hormuz have taken toll on India's catering industry amid the restricted supply of liquefied petroleum gas (LPG) as the authorities are prioritizing supplies to households and essential non-domestic sectors.
India's Ministry of Petroleum and Natural Gas said on Wednesday in a post on X that in light of the current geopolitical disruptions to fuel supply and constraints on supply of LPG, it has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use.
It has prioritized domestic LPG supply to households, said the ministry.
Non domestic supplies from imported LPG is being prioritized to essential non domestic sectors such as hospitals and educational institutions, it said.
For LPG supply to other non-domestic sectors, a committee of three Executive Directors (EDs) of Oil Marketing Companies (OMCs) has been constituted to review the representations for LPG supply to restaurants, hotels, and other industries, the ministry said.
India is the world's second-largest importer of LPG, with 90 percent of its imports transported via the Strait of Hormuz.
The local catering association said on Tuesday that suppliers have indicated that they will suspend LPG supplies to the sector.
"Our LPG stocks will only last for two days at most. If LPG supplies are not restored within two days, we will have to close the restaurant. We will not only be unable to provide food to customers, but also unable to offer meals to our employees. [If we suspend operation,] we will also be unable to pay our staff," said Suresh Naik, a restaurant owner in Mumbai.
In India, LPG is distributed and replenished in cylinders through distributors.
Hormuz shipping disruptions takes toll on India's catering industry
