India tightens gas control, restaurant owners warn of potential wave of closures

The Middle East war disrupted import supplies. On Tuesday, India ordered to tighten control over liquid natural gas and liquefied petroleum gas. The catering industry warned that it might lead to widespread closures.

AFP reported that India, as the country with the largest population in the world, is the fourth-largest importer of liquefied natural gas (LNG) globally and the second-largest importer of liquefied petroleum gas (LPG), which is widely used for household and commercial cooking. A considerable portion of the LPG comes from the Middle East region.

In a command issued on Tuesday (March 10th), the Indian Ministry of Petroleum stated: "The ongoing conflicts in the Middle East have led to disruptions in the transportation of liquefied natural gas through the Strait of Hormuz."

The document states that the new regulations will "ensure fair distribution and continuous supply of resources to priority areas".

According to the order, the supply of LNG will give priority to meeting the demands of residential households, the transportation industry, and the production of liquefied petroleum gas.

Other industries, including fertilizer plants and the tea industry, will receive 70% to 80% of the gas supply. The specific supply "will depend on the operational conditions". To make up for the shortfall, the gas supply to petrochemical facilities and power plants will be reduced either entirely or partially.

At the same time, after the Indian government issued another order on Monday (the 9th) to prioritize the supply of liquefied petroleum gas to resident households, restaurants and hotels across India also warned that their operations would be affected.

The National Association of the Catering Industry in India has warned that the government's directive has led to the cessation of gas supply by LPG suppliers to catering businesses across the country.

The association stated in its declaration that the catering industry is highly dependent on commercial liquefied petroleum gas for its operations. Any supply disruption would force most restaurants to suspend their business.

Rao, the head of a hotel industry association in Bangalore, India, said that the current situation is "extremely serious".

The gas supply has been affected, with many small restaurants and hotels having only one or two days' worth of stock left, while large enterprises may still have about 10 days' worth of reserves. In the future, they may adjust or reduce their menus based on the actual situation.