Odisha hotels, restaurants warn of shutdowns amid LPG supply crunch

Hotel and restaurant owners in Odisha warn they may shut establishments as disruptions in commercial LPG cylinder supply threaten operations, employment and tourism in the state

The escalating conflict in West Asia has begun to impact the hospitality sector in Odisha as hotel and restaurant owners on Tuesday warned that they may close their establishments due to disruptions in the supply of commercial LPG cylinders.

 

Industry representatives cautioned that the short supply could severely affect business, employment and tourism unless the supply situation improves soon. The Hotel and Restaurant Association of Odisha (HRAO) has urged the Centre to intervene immediately and ensure uninterrupted supply of commercial LPG cylinders to the hospitality sector.

 

Expressing serious concern over the disruption in the supply of commercial LPG cylinders, which is creating major operational challenges for the hospitality industry, HRAO president J K Mohanty has written to Union Petroleum and Natural Gas Minister Hardeep Singh Puri seeking urgent measures to streamline supply.

 

“Hotels and restaurants are heavily dependent on uninterrupted supply of commercial LPG cylinders for their daily kitchen operations. The sudden disruption has already begun affecting food preparation and service in many establishments. If the situation continues, it may lead to closure of hotel operations,” he said.

 

According to industry estimates, Odisha has around 8,000 hotels and restaurants, apart from thousands of roadside eateries that depend largely on commercial LPG cylinders for their daily cooking requirements. “If the supply is disrupted, kitchens will simply not be able to function,” Mohanty said.

 

He said small roadside eateries may attempt to manage by switching to coal or firewood, while larger establishments such as hotels and restaurants cannot shift fuels overnight due to infrastructure and safety requirements. “However, we are planning to use alternate fuel like coal or firewood to prepare food for big events like weddings and marriage receptions,” he told Business Standard.

 

The hospitality sector is a major employment generator in the state. Industry representatives said the sector supports more than 50,000 workers, including cooks, service staff, suppliers and transport operators, apart from contributing significantly to the tourism economy.

 

Mohanty also cautioned that prolonged disruption in LPG supply could trigger a cascading effect on tourism as well. “The hotel and restaurant industry forms a crucial component of India’s tourism ecosystem. The sector contributes significantly to employment generation and state revenues since the overall economic activity is linked with tourism. Any disruption in essential services such as LPG supply directly impacts the ability of hotels and restaurants to provide quality services to tourists. Such disruptions may also adversely affect the reputation of tourist destinations and the overall tourism experience in the country,” he added.