Hormuz crisis hits Karnataka: Gas shortage triggers ₹150 crore loss for Bengaluru hotels

Bengaluru : The ongoing Gulf tensions have begun to severely impact daily life in India, with Karnataka witnessing a sharp shortage of LPG cylinders after Iran reportedly tightened control over the Strait of Hormuz, a crucial global oil transit route. As many as 22 ships carrying cooking gas and crude oil meant for India are said to be stranded, triggering a supply disruption that has hit multiple sectors, especially the hospitality industry.

The crisis has led to a massive shortage of commercial LPG cylinders across the state, forcing hotels and restaurants to struggle to keep operations running. According to Hotel Owners’ Association president P.C. Rao, Bengaluru alone has suffered losses worth ₹150 crore in just two weeks due to the gas crunch.

“Hundreds of hotels in the city have either shut down partially or are running at reduced capacity. Last week, losses stood at nearly ₹100 crore, and this week it has gone up by another ₹50 crore,” Rao said, highlighting the scale of the crisis.

Hotels turn to firewood amid LPG scarcity

With commercial gas cylinders becoming scarce, many hotel owners have been left with no choice but to revert to traditional firewood stoves. However, this alternative has proven to be both inefficient and expensive.

In several parts of the state, including Belagavi, eateries have started cooking using firewood, leading to increased cooking time and operational challenges. Hotel owners say what earlier took a couple of hours on gas stoves now takes significantly longer, affecting service speed and customer satisfaction.

The cost of firewood has also surged due to rising demand. Traders are now charging around ₹9 per kilogram of firewood, and hotels are reportedly consuming nearly 25 kilograms per day. Despite this shift, many owners claim they are still incurring losses due to higher costs and reduced output.

Widespread impact beyond Bengaluru

The LPG shortage is not limited to Bengaluru. Several districts across Karnataka are facing similar issues, affecting not just hotels but also small businesses, PG accommodations, and even households relying on LPG for daily cooking.

Consumers have expressed frustration over the unavailability of cylinders, while small-scale establishments are finding it increasingly difficult to sustain operations.

Supply concerns persist despite shipments

Authorities point out that LPG shipments have arrived recently. Last week, ships named Shivalik and Nandadevi reportedly delivered around 92,000 metric tonnes of LPG to India. However, despite these arrivals, the demand-supply gap continues to persist, indicating deeper logistical disruptions linked to the geopolitical situation.

Experts warn that as long as tensions continue in the Gulf region, particularly around the Strait of Hormuz, global energy supplies could remain unstable, directly affecting countries like India that depend heavily on imports.

Call for urgent intervention

Industry stakeholders have urged both the state and central governments to take immediate measures to stabilize supply and prevent further economic damage. There are also demands for prioritizing commercial LPG allocation to essential sectors like the hospitality industry.

As the crisis deepens, the coming days will be crucial in determining whether supply chains can be restored quickly or if the shortage will continue to disrupt normal life and business operations across the state.