LPG crisis: Kerala’s critical sectors face gas shortage despite 20% relief allocation by Centre

Kerala's critical sectors face LPG shortages despite a 20% relief allocation, impacting restaurants and hotels significantly.

Although the Centre has allocated an additional 20% of commercial LPG to the States, taking the total allocation to 50%, the critically affected sectors in Kerala are yet to receive a proportional share, despite prioritisation by both the Central and State governments.

According to the Centre’s directive, the additional 20% allocation is to be given on priority to sectors such as restaurants, hotels, industrial canteens, food processing and dairy units, subsidised canteens and outlets run by State governments or local bodies, community kitchens, and 5 kg Free Trade LPG (FTL) for migrant labourers.

According to G. Jayapal, State president of the Kerala Hotel and Restaurant Association (KHRA), which represents around 60,000 registered hoteliers in Kerala, a meeting convened by the Commissioner of Civil Supplies and Consumer Affairs decided to allocate 20% of the actual LPG consumption of hoteliers to restaurants and hotels, based on consumption data available in oil company databases. For instance, if a hotel had been using five LPG cylinders prior to the crisis, it would now be allotted one cylinder to meet its basic energy requirements.

However, this arrangement will come into effect only after the State government issues a formal order and communicates it to the oil companies. The decision is expected to be submitted to the Chief Secretary on Monday (March 23, 2026), with a formal order likely to be issued the same day, considering the gravity of the crisis, Mr. Jayapal said.

Meanwhile, a majority of hotels in Kerala, including community kitchens run by agencies such as Kudumbashree, remained closed due to LPG shortage.

According to B. Vijayakumar, owner of Nook Restaurant in Thiruvananthapuram and district secretary of KHRA, operating a hotel with just 20% of LPG supply is an arduous task. “This will only allow hoteliers to function with restricted hours and limited menus,” he said.