The hotel and restaurant industry in Kochi continues to struggle as the LPG crisis shows no signs of easing. Of the more than 5,000 establishments registered with the Kerala Hotel and Restaurant Association (KHRA) in Kochi, nearly half have been forced to close due to shortage of LPG.
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 demand for commercial bottles is currently handled online through a portal where institutions and businesses can register their requirements. The categories have been divided into ‘basic’, ‘semi-basic’, ‘non-basic’ and ‘other’ and based on that the bottles are supplied.
“LPG is being distributed on a priority basis. At present, 100% of the requirements of hospitals, educational institutions and similar critical sectors have been met. For restaurants, initially only 10% of the required supply was met, which has now been increased to 20%. The overall shortage remains largely unchanged, but we believe the situation could improve from next week,” the official said.
KHRA state president G. Jayapal said the industry was staring at a huge crisis. “More than 50% hotels across the state had to be shut down after the crisis. The current decision to meet 20% of the demand raised by individual hotels will not solve the crisis. They can only function when at least 50% of their LPG requirements are met,” said Mr. Jayapal.
KB Sasi, a restaurant owner in Perumbavoor who had to close one of his hotels, says the crisis has hit the sector deeply. “Even if we shut down, we continue to pay our employees to maintain the workforce. Private gas agencies are now charging exorbitant rates, so it is difficult to rely on them. I am continuing to operate another hotel in Perumbavoor as it is near the hospital and many rely on the hotel,” said Mr. Sasi.
KT Rahim, district secretary of KHRA, who owns a restaurant in Kadavanthra, had to close his shop after the crisis. He says the industry is facing significant financial losses.
“Most hotels cannot rely on alternative fuel systems like wood-burning stoves. LPG is the only solution and the only option is to go fuel-free. The crisis could deepen and affect other sectors,” Mr Rahim said.
Published – 21 March 2026 21:47 IST
