Commercial gas shortage spreads across MP:Bookings stopped in several cities; Iran-Israel war impact raises fear of hotel restaurant shutdowns

Amidst the Iran-Israel war, vigilance has increased in Madhya Pradesh regarding LPG supply. The supply of commercial gas cylinders has been stopped in many cities, which is likely to affect hotels, restaurants, and small businesses. In the capital Bhopal, Collector Kaushalendra Vikram Singh called a meeting of oil companies, gas agencies, and trade organizations. Meanwhile, the Bhopal Chamber of Commerce stated that more than 2000 hotels and restaurants in the city could face a crisis due to the unavailability of commercial cylinders. Oil companies have stopped the delivery of commercial cylinders since Monday. However, the government says that the supply of domestic gas and petrol-diesel is normal and there is no need to panic. Waiting for domestic cylinders in five major cities too, exploring alternatives Bhopal: 2000 hotels in crisis, collector calls meeting The hotel-restaurant and catering business in Bhopal is likely to be affected due to the halt in the supply of commercial cylinders. Govind Goyal, President, and Ajay Devnani, Secretary, of the Bhopal Chamber of Commerce, informed the administration that more than 2000 hotels and restaurants in the city depend on commercial gas. During the wedding season, a large hotel uses 10-15 cylinders at a time, and a small hotel uses 2-4 cylinders. Currently, some stock is left, but it is expected to run out in two days. According to the Sarafa Association, the gas crisis could also affect about 3,000 gold and silver artisans who need about 300 cylinders daily. The Collector has directed strict action against hoarding and black marketing in the meeting. Gwalior: Commercial cylinder booking closed In Gwalior, booking for commercial gas cylinders has been completely stopped. According to the Gwalior-Chambal LPG Federation, currently, cylinders are only being provided to hospitals and emergency services. Delivery of domestic gas cylinders is taking 5 to 6 days. Hotel-restaurant operators say that business will be affected if gas is not available. Many operators are also looking for induction stove alternatives. Indore: Commercial supply stopped, no crisis in hotels The supply of commercial gas cylinders has also been stopped in Indore. Domestic gas cylinders are being delivered in 4-5 days. According to Sumit Suri, President of Indore Hotel Association, the hotel industry in the city has not faced any major crisis yet, but problems may arise in the coming days. Hotel operators have called a meeting on this issue and are also preparing to meet the Chief Minister. Jabalpur: Impact on hotel industry begins Hotel and restaurant operators in Jabalpur have reported a reduction in gas supply. Rajesh Jain, operator of Hotel Arihant Palace, says that the government has limited supply to the industrial and commercial sectors, which could affect the hotel business. Hotel operator Shubham Gupta stated that when he went to the agency to collect cylinders, he did not receive any. Ujjain: Restaurants on the verge of closure In Ujjain too, commercial cylinders have not been available for two days. According to Collector Roshan Singh, commercial cylinders are currently being supplied only to hospitals and schools. Booking for domestic gas cylinders will now only be possible after 25 days, and delivery may take 5-7 days. According to agencies, people are booking in large numbers due to panic. Government increased domestic gas cylinder prices by 60 The government has made domestic gas cylinders 60 more expensive. In Delhi, a 14.2 kg LPG gas cylinder is now available for 913. Earlier, it was 853. The increased prices came into effect from March 7. Meanwhile, the price of a 19 kg commercial cylinder was increased by 115 on February 1. It is now available for 1883. This much supply daily in the state Rules for domestic cylinder booking changed State government claims supply is normal, no need to panic In the cabinet meeting, Chief Minister Mohan Yadav instructed to monitor the availability of petrol, diesel, and gas. Minister Chaitanya Kashyap said that there is sufficient stock of petroleum products in the state and the supply of domestic gas is normal. The government has appealed to avoid rumors spreading on social media and to rely only on authorized information. Government implements essential commodities act to stop black marketing Meanwhile, the Central Government has implemented the ‘Essential Commodities Act 1955’ across the country to prevent the hoarding of essential commodities, including gas. Now, gas will be divided into 4 categories Government took 5 essential steps to deal with the crisis 1. High-Level Committee Formed: Considering the crisis, the Ministry of Petroleum has formed a high-level committee of executive directors from three oil companies, which will review the supply. 2. Essential Commodities Act Implemented: To control gas supply, the central government has implemented the ‘Essential Commodities Act 1955’ across the country. 3. LPG Booking After 25 Days: Changes have been made to the rules for booking domestic cylinders. Consumers can book a second cylinder only 25 days after the first one is delivered. 4. OTP and Biometric Mandatory: To prevent gas hoarding, delivery agents are strictly using OTP or biometric verification. 5. Order to Increase LPG Production: The government has ordered all oil refineries to increase LPG production. This extra production will be used for domestic gas. Two Major Reasons for Cylinder Supply Crisis 1. Near Closure of ‘Strait of Hormuz’ The biggest challenge for India is the closure of the ‘Strait of Hormuz’. This is an approximately 167 km long waterway that connects the Persian Gulf to the Arabian Sea. Due to the Iran war, this route is no longer safe. Considering the danger, no oil tanker is passing through there. 20% of the world’s total petroleum passes through here. Countries like Saudi Arabia, Iraq, and Kuwait also depend on this for their exports. India imports 50% of its crude oil and 54% of its LNG through this route. Iran itself exports through this route. 2. LNG production halted due to drone attack on plant Last week, America-Israel conducted strikes on Iran. In response, Iran targeted American bases in countries like UAE, Qatar, Kuwait, and Saudi. Following Iran’s drone attack, Qatar, the largest gas supplier to India, has halted production at its LNG plant. This has reduced gas supply in India. India imports 40% of its required LNG (approximately 27 million tons annually) from Qatar. Indian Oil (LPG) CGM says – Considering importing cargo from America Indian Oil’s Chief General Manager (LPG) K.M. Thakur says that customers do not need to panic and should not make panic bookings. The government is now considering importing alternative cargo from countries like America. Meanwhile, at the international level, G7 countries are discussing releasing supplies from their emergency oil reserves to mitigate the energy crisis in the global market. Additional crude oil is also expected from Russia and Algeria.