LPG shortage hits hotels in Kerala’s Kannur; about 40 units face closure, black marketing alleged

LPG shortage in Kannur threatens 40 hotels with closure, amid allegations of black marketing and soaring prices.

An acute shortage of LPG linked to the escalating conflict in West Asia has begun to hit the hospitality sector in Kannur district of Kerala, with around 40 hotels facing the risk of closure as the supply of commercial cylinders has virtually stopped in recent days.

The crisis has already forced Ghazal, a prominent hotel, and 10 others in Kannur city to shut down after it was unable to obtain LPG cylinder required for daily operations.

Manoj Kumar, hotel manager, said that for the last two days, there has been no supply of gas cylinders. “We are forced to close down. Today (Friday), we have just a cylinder, which is needed to prepare food for over 30 staff members.” he said.

Most of the staff are our from other States and if they leave, it will become even more difficult to run the business, he said. In the absence of cylinder, the cost of firewood have also escalated and the government should immediately intervene, he added.

Hotel owners alleged that several gas agencies, particularly private distributors, have sharply increased the price of commercial cylinders citing supply shortages. They also claim that some agencies are selling cylinders in the black market, further worsening the situation for hotels and eateries.

Niketh Balan, a hotel owner in the city, said his establishment requires at least three commercial cylinders a day.