City hotel industry relieved as commercial gas supply eases
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City hotel industry relieved as commercial gas supply eases

April 12, 2026

Mysore/Mysuru: The City hoteliers seem to be a relieved lot as commercial LPG gas cylinders supply, which was severely hit due to the ongoing US-Israel war with Iran and West Asia tensions,  has eased considerably over the past few days.

The situation has improved with most of the hotels, restaurants, sweet shops, bakeries and other eateries which shut down in the first week of last month over severe LPG crisis, having reopened, much to the relief of customers.

Since the West Asia conflict began on Feb. 28 with US-Israel waging a joint war against Iran, the supply of LPG cylinders took a severe hit as the Strait of Hormuz, which was the key sea route in the Gulf for LPG supplies, was shut down by Iran. As a result, a good number of hotels, restaurants and other eateries shut down on account of non-availability of commercial LPG cylinders. Taking note of the serious situation regarding gas supplies, the Union Government framed certain guidelines for availing cylinders from authorised gas agencies. Accordingly, the hotel owners have to complete the formatted application form and submit the same to authorised gas agency, which in turn will forward the same to the concerned Oil Marketing Company. After getting approval, the gas agency will supply LPG cylinders to the applicants. Now with increased number of LPG shipments reaching India, the situation has eased when compared to last month.

However, the food suppliers who do not have the required documents to get LPG cylinder from authorised agencies, are looking at other options, including buying cylinders in the black market by paying an exorbitant price. While the official prices of LPG cylinders (19-kg) supplied by Public sector oil companies such as BPCL, HPCL and IOCL, stands at Rs. 2,141 a cylinder, the price of a 17-kg cylinder of private companies is a whopping Rs. 4585, which is more than double that of public                        sector gas companies.

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Despite this high price, hoteliers are willing to pay for it and the hotel owners are passing on the burden to customers, by hiking the prices of every food item, delicacy and recipe, by at least 20 percent.

Defending the price hike of food items in hotels, Mysuru Hotel Owners Association President C. Narayanagowda said, it had become inevitable for hoteliers to hike the prices as LPG gas prices have increased abnormally due to the West Asia conflict. Pointing out that LPG is the main source of cooking in hotels and restaurants, he said there is a lot of difference in the prices of LPG cylinders supplied by public sector companies and private suppliers.

But still, the hoteliers are inevitably opting for private LPG manufacturers as they find it more convenient to get cylinders. As such, hoteliers are hiking prices of food items to offset expenses for getting cylinders, he said.

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