LPG shortage affects banquet halls, catering services during wedding season

LPG shortage: The rationing of commercial LPG cylinders has affected banquet halls and catering services during the crucial wedding season. This has come after the government rationed the supply of commercial LPG cylinders amid the Iran war which has led to disruptions across the energy ecosystem. 

According to a report in Times of India, operators said that even short disruptions can affect scheduled functions. Several banquet operators have said that their LPG stocks may last only a few days. They might have to arrange other alternatives such as coal or stop accepting bookings altogether, they said. 

Indians follow the Hindu panchang, and Nakshatra-based Shadi Muhurat before finalising wedding dates. Auspicious wedding dates are available for the entire month of March, and a heavy rush is expected till March 14. There will be a decline but the rush will begin once again from April 10. 

A banquet manager told the daily that they have 4-5 days of LPG stock, and they might be required to stop taking fresh bookings for weddings. 

Moreover, businesses were expected to pick up after Ramzan. 

Another manager said that the wedding season begins after Eid and that advance bookings were already made. He said if the supply shortage continues, they would face heavy losses. LPG is not only used for cooking but also to maintain the temperature of the food during events and services.

Food is also prepared in batches for such events, and coal-cooking would take more time and manpower. 

COMMERCIAL LPG SHORTAGE

The oil ministry formed a three-member committee to address supply challenges following the sudden shortage of commercial LPG cylinders that has raised concerns in the hospitality sector. Restaurant associations have warned that the ongoing supply crunch may force eateries to shut down within days if commercial LPG supplies are not restored.

India consumes about 31.3 million tonnes of LPG annually, with 87 per cent used by domestic households and the remaining by commercial establishments such as hotels and restaurants. Of this, 62 per cent is met through imports, indicating a reliance on global supply chains.

Recent hostilities involving the US, Israel, and Iran have led to the closure of the Strait of Hormuz, which is the route for 85-90 per cent of India's LPG imports, mainly from Saudi Arabia. Due to these disruptions, the government has prioritised domestic LPG supplies for households over commercial demand.

Industry sources report that the disruption has already begun affecting operations in multiple cities, including Mumbai and Bengaluru, as hotels and restaurants face difficulties in securing cooking gas.