Kolkata Hospitality Sector on Edge Over Potential LPG Supply Disruptions
Restaurants and hotels in Kolkata are preparing for possible interruptions in commercial liquefied petroleum gas (LPG) supply, driven by the escalating conflict in the Gulf region. This concern has intensified following a directive from the Union oil ministry, which instructed oil marketing companies (OMCs) to prioritize domestic LPG distribution. This strategic shift could lead to tightened supplies for commercial users, including eateries and hotels, raising alarms across the city's vibrant hospitality industry.
Price Hikes and Official Reassurances
Commercial LPG prices have already surged by Rs 114.50, marking an increase of approximately 5.5% to 6%. This price hike adds to the financial strain on businesses operating with narrow profit margins. Despite these developments, an official from Indian Oil Corporation (IOC) has sought to calm nerves, stating that there is no immediate cause for panic among commercial users. "At present, there is no curtailment of commercial LPG supply. We are monitoring the situation closely and ensuring that supply chains remain stable," the official emphasized.
Industry Anxiety and Panic Buying
However, restaurant operators report that uncertainty is already fostering anxiety within the sector. Sudesh Poddar, president of the Hotel and Restaurant Association of Eastern India (HRAEI), confirmed that many restaurant owners are worried. "There is definitely some panic among restaurateurs. Some eateries that normally require 10 cylinders a day are booking 20 out of fear. But after speaking with IOC officials, we have been assured that there is no need for panic at the moment," Poddar explained. He also highlighted that the price increase alone will impact operating costs, putting additional pressure on establishments with tight budgets.
Dealer Insights and Supply Chain Concerns
Bijon Bihari Biswas, spokesperson for LPG dealers in the region, noted that dealers are fielding anxious calls from commercial users. "Restaurants and caterers are asking whether there will be a shortage. As of now, we are supplying normally. But if the Gulf conflict drags on and imports are affected, commercial supplies could tighten because domestic consumers will get priority," Biswas elaborated. This potential prioritization underscores the vulnerability of commercial sectors in times of geopolitical instability.
Voices from the Ground: Small Eateries and Canteens
Small-scale operators are particularly vulnerable. Ratan Shaw, who runs a roadside eatery in central Kolkata, expressed his concerns: "We use two to three cylinders daily for cooking. If the price keeps rising or supply becomes uncertain, it will be very difficult for us." Similarly, a manager of a college canteen in south Kolkata echoed these worries, stating, "Gas is our biggest daily cost after raw materials. If cylinders become scarce, we won't even be able to run the kitchen properly."
Larger Chains Adopt Cautious Optimism
In contrast, larger restaurant chains are approaching the situation with cautious optimism. Nitin Kothari, owner of prominent establishments like Peter Cat, Mocambo, and Peter Hu!, recalled past disruptions and expressed confidence: "I feel the situation will improve. There is no need to panic at this stage." Debaditya Chaudhury, managing director of the Chowman, Oudh 1590, and Chapter 2 restaurant group, which operates 57 outlets pan-India, acknowledged the potential impact but remained hopeful: "Since we operate pan-India with 57 outlets, any such development will naturally hurt us. However, I believe the government will take the necessary precautions."
The ongoing Gulf conflict continues to cast a shadow over Kolkata's hospitality sector, with stakeholders closely watching for further developments that could affect LPG supply and pricing.
