The Karnataka High Court took cognisance of a petition filed by the Bangalore Hotels Association highlighting the severe shortage of commercial Liquefied Petroleum Gas cylinders and its impact on hotels and restaurants across Bengaluru. The Court issued notice to the Union Government, the State Government, and oil companies, seeking their response on the issue and calling for details regarding supply, allocation, and distribution of LPG cylinders.
The matter was heard by a single-judge bench, which considered the grievances raised by the association regarding the ongoing disruption in the supply of commercial LPG. The petition pointed out that the shortage had reached a level where the functioning of thousands of hotels and eateries was under serious threat. It was submitted that the supply constraints had led to an abrupt and significant reduction in the availability of LPG cylinders, thereby affecting daily operations of food establishments.
The petitioners challenged the Natural Gas (Supply) Order, 2026 issued by the State government, which imposed restrictions on the daily supply of commercial LPG cylinders. According to the petition, the order limited the total number of cylinders supplied across the state to 7,000 per day, of which only 1,000 were allocated to hotels, restaurants, and roadside eateries. The association argued that such a limited allocation was grossly inadequate and disrupted the regular supply chain necessary for the hospitality sector.
The petition highlighted that Bengaluru alone has over 40,000 hotels and restaurants that depend heavily on commercial LPG as their primary source of fuel for cooking. It further pointed out that around six lakh workers are directly dependent on the hotel and restaurant industry for their livelihood. The disruption in LPG supply, therefore, not only affects business operations but also has significant implications for employment and economic activity linked to the sector.
In addition to the direct impact on hotels and restaurants, the petition noted that several allied sectors are also affected by the shortage. The hospitality industry plays a crucial role in supporting demand for perishable goods such as milk, vegetables, and other food products. Any disruption in the functioning of hotels leads to a cascading effect on these sectors, impacting producers, suppliers, and distributors.
The association contended that the abrupt restriction on LPG supply amounts to an unreasonable interference with the right to carry on business. It argued that the sudden reduction in the availability of commercial cylinders effectively cripples the functioning of establishments that rely on a steady and uninterrupted supply of fuel. The petition described the situation as an indirect yet substantial restriction on the ability of hotel operators to carry on their profession.
The Court took note of the submissions and sought detailed responses from the concerned authorities on various aspects of the issue. These included the current stock of commercial LPG cylinders, the allocation policy being followed, the mechanism for distribution, and the steps being taken to address the disruption in supply. The Court directed the authorities to place relevant data on record to enable it to assess the situation comprehensively.
The petition also referred to the broader context of the shortage, stating that global geopolitical developments had contributed to disruptions in LPG supply chains. The association argued that the effects of such external factors were now being felt domestically, particularly in sectors that rely heavily on commercial LPG for their operations.
In its interim prayer, the petition sought directions to ensure an uninterrupted supply of commercial LPG cylinders to hotels and restaurants during the pendency of the case. It emphasized the need for immediate intervention to prevent widespread closure of establishments and to ensure the continuity of essential food services.
The Court, while issuing notice, indicated that it would examine the matter further after receiving responses from the Union and State authorities as well as oil companies. The case was scheduled for further hearing, during which the authorities are expected to provide clarity on the measures being taken to mitigate the shortage and restore normal supply levels.
The proceedings reflect the growing concern over the impact of the LPG shortage on the hospitality sector and the broader economy. The Court’s direction to seek detailed responses underscores the need for a coordinated approach by the authorities to address the issue and ensure that essential services are not disrupted.
The case highlights the dependence of the hotel and restaurant industry on commercial LPG and the challenges posed by sudden disruptions in supply. It also brings attention to the wider economic consequences of such shortages, including their effect on employment and allied industries.
Overall, the Karnataka High Court’s intervention in the matter is focused on examining the adequacy of LPG supply and ensuring that the concerns of the hospitality sector are addressed through appropriate measures. The outcome of the case will depend on the responses filed by the authorities and the steps proposed to resolve the ongoing shortage crisis affecting hotels and restaurants.
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