LPG shortage hits hotels in Kerala’s Kannur; about 40 units face closure, black marketing alleged

An acute shortage of LPG linked to the escalating conflict in West Asia has begun to hit the hospitality sector in Kannur district of Kerala, with around 40 hotels facing the risk of closure as the supply of commercial cylinders has virtually stopped in recent days.

The crisis has already forced Ghazal, a prominent hotel, and 10 others in Kannur city to shut down after it was unable to obtain LPG cylinder required for daily operations.

Manoj Kumar, hotel manager, said that for the last two days, there has been no supply of gas cylinders. “We are forced to close down. Today (Friday), we have just a cylinder, which is needed to prepare food for over 30 staff members.” he said.

Cost of firewood up

Most of the staff are our from other States and if they leave, it will become even more difficult to run the business, he said. In the absence of cylinder, the cost of firewood have also escalated and the government should immediately intervene, he added.

Hotel owners alleged that several gas agencies, particularly private distributors, have sharply increased the price of commercial cylinders citing supply shortages. They also claim that some agencies are selling cylinders in the black market, further worsening the situation for hotels and eateries.

Niketh Balan, a hotel owner in the city, said his establishment requires at least three commercial cylinders a day.

“Earlier, we bought a cylinder for around ₹1,800, but now agencies are asking more than ₹3,000 for the same cylinder,” he said, adding that he refused to purchase cylinders at such inflated rates.

A tea shop owner near the Kannur old bus stand said government officials had visited his shop to check whether domestic cylinders were being used for commercial purposes.

He said the authorities should instead monitor agencies allegedly exploiting the shortage to sell cylinders illegally.

Bupesh K., district president of the Kerala Hotel and Restaurant Association, warned that most hotels may be forced to shut down in next two days if the situation continues.

He said there is no gas filling taking place and distributors are refusing to supply commercial gas.

Industry sources said the crisis could trigger a major economic impact in the district. If hotels shut down, around 20,000 workers could lose their jobs, affecting the livelihood of numerous families dependent on the sector.

Hotels in Kannur typically consume between two-six LPG cylinders a day, making uninterrupted supply crucial for their operations. With supply disrupted and prices soaring, many establishments have already begun modifying menus and cooking practices to cope with the crisis.

Hotel owners also pointed out that a large number of migrant workers depend on small eateries for daily meals and urged the government to intervene to curb black marketing and ensure adequate LPG supply to the sector.

Kannur District Supply Officer K.N Bindu said that there will be no dearth of domestic cylinders until March-end and companies have assured uninterrupted supply.

However, supply of commercial cylinders have been restricted considering the situation. Taluk Supply Officers have been instructed to inspect the agency storehouses and to prevent any illegal sale of gas cylinders.