The Bangalore Hotels Association on Monday announced that hotels in the city will be closed from Tuesday (March 10) due to the disruption of supply of gas cylinders for commercial use due to ongoing tensions in West Asia following the joint attacks by Israel and the US on Iran.
“Oil companies have said that there will be no interruption of gas supply for 70 days. However, the sudden stoppage of supply is a big blow to the hotel industry. We therefore expect the Union Ministers concerned to take immediate action in this regard and restore commercial gas supply and provide support to the hotel industry,” the association said in a statement.
The LPG supply disruption comes amid continued tensions in the Gulf countries triggered by the ongoing Israel-US-Iran conflict, which entered its second week on Saturday, March 7.
LPG prices have increased
LPG domestic cooking gas prices in India increased by ₹ 60 per cylinder on Saturday. ₹60 per cylinder and in the commercial cylinder it increased by ₹115, mentioned by Indian Oil Corporation (IOC) on its website.
This is the second rate hike in 11 months. Prices were recently increased ₹50 in April last year.
LPG cylinder prices – both domestic and commercial – rose as oil companies anticipated increased energy prices in light of the conflict in the Middle East.
What are the new rates?
Non-subsidized LPG is now available in Mumbai ₹912.50, ₹939 in Calcutta and ₹928.50 in Chennai, as per the rates listed on the IOC website. Rates vary from state to state depending on the amount of local sales tax or VAT.
Meanwhile, commercial LPG, used by establishments such as hotels and restaurants, is now at a standstill ₹1 883 in Delhi. At the beginning of this month, the price of commercial LPG was increased by ₹114.5 per 19kg cylinder.
“India in a comfortable position”
The government has reportedly ordered all LPG refineries to increase production to ensure adequate availability across the country. Officials told ANI that India currently remains in a comfortable position in terms of LPG stocks.
India is in a “very comfortable position” in terms of availability of crude oil, petroleum products and LPG supplies amid fears of a possible disruption of the Strait of Hormuz, news agency ANI said earlier, citing government sources.
The sources claimed that the country currently has access to larger energy reserves from diversified sources than could potentially be affected by the Strait of Hormuz.
