Karnataka allocates 20% of daily LPG to hotels, 10,000 cylinders daily
Karnataka allocates 20% of daily LPG to hotels, 10,000 cylinders daily
Karnataka will divert 20% of its daily commercial LPG to hotels, supplying about 10,000 cylinders each day to Bengaluru's hospitality sector amid persistent shortages.
Karnataka will immediately allocate about 20% of the state's daily commercial LPG supply to hotels and other commercial establishments, a move aimed at easing a severe shortage that has disrupted operations for weeks. Around 10,000 commercial cylinders would be supplied daily to hotels, restaurants, industrial canteens and dhabas following discussions with oil marketing companies, as the hospitality sector struggles to secure deliveries. The state government says the plan comes after an assessment of current demand, which averages about 45,000 cylinders used by hotels and related establishments.
The Centre has approved a total daily allocation of 16,105 commercial cylinders for Karnataka. Of these, about 4,200 would go to educational institutions, 1,200 to public sector undertakings, and 500 to agriculture and allied sectors, with 200 cylinders reserved for emergencies. The remaining share is being redirected to the hotel and commercial sectors to help cushion the impact of the shortage, a reality many Bengaluru hoteliers have faced in recent weeks.
The backdrop to the crisis is global disruption, including the ongoing West Asian conflict, which has strained supply chains and pushed up demand for LPG in several states. In Bengaluru, the shortage has hit hotels hard, with industry sources estimating losses of around ₹150 crore over the past three weeks. Some operators have reported resorting to domestic cylinders at steep markups, underscoring the urgent need for a reliable, long-term solution.
Minister KH Muniyappa noted that the shortage began around March 7–8 and stressed that while the 10,000-cylinder daily allocation will help the hotel sector, it is not a permanent fix. He highlighted the importance of exploring long-term alternatives such as solar and biomass energy to reduce dependence on LPG in the hospitality industry. The government’s step is framed as an immediate relief measure, alongside calls for structural improvements in supply chains and energy diversification to protect Bengaluru’s bustling hospitality scene.
