LPG crisis continues to affect hotel industry in Kochi

The hotel and restaurant industry in Kochi continues to struggle as the LPG crisis shows no signs of easing. Out of more than 5,000 establishments registered with the Kerala Hotels and Restaurants Association (KHRA) in Kochi, nearly half have been forced to shut down due to LPG shortage.

Experts warn that if the situation persists, many more businesses may close, deepening the crisis in the sector.

According to an official from the Ernakulam district supply office, the supply demands of commercial cylinders are currently addressed online through a portal where the institutions and businesses can register their requirements. The categories have been divided as ‘essential’, ‘semi-essential’, ‘non-essential’ and ‘others’, and the cylinders are supplied based on this.

“LPG is being distributed based on priority. Currently, 100% of the requirements from hospitals, educational institutions, and similar critical sectors are being met. For restaurants, only 10% of the requested supply was initially fulfilled, which has now been increased to 20%. The overall shortage remains largely unchanged, but we believe that the situation could improve starting next week,” said the official.

KHRA State president G. Jayapal said that the industry was staring at a huge crisis. “More than 50% of the hotels across the State had to be shut following the crisis. The present decision to meet 20% of the demand raised by individual hotels will not solve the crisis. They can function only if at least 50% of their LPG requirement is met,” said Mr. Jayapal.

K.B. Sasi, a restaurant owner in Perumbavoor who had to shut one of his hotels, says that the crisis has hit the sector deeply. “Even when we shut operations, we are continuing to pay our employees to retain the workforce. The private gas agencies are charging exorbitant rates now which makes it difficult to rely on them. I am continuing to run another hotel in Perumbavoor as it is close to a hospital and many rely on the hotel,” said Mr. Sasi.

K.T. Rahim, district secretary of KHRA and who owns a restaurant in Kadavanthra had to shut his shop following the crisis. He says that the industry is facing significant financial loss.

“Most hotels cannot rely on alternate fuel systems such as wood stoves. LPG is the sole solution and the only option is to shut down the business without the fuel. The crisis could deepen and affect other sectors,” said Mr. Rahim.