Alarm bells set ringing for Kashmir’s hospitality sector

Srinagar, Mar 10: The escalating war between the United States-Israel and Iran has begun casting a shadow over fuel supply chains globally, triggering concerns within Kashmir’s hospitality sector, which fears that any disruption in LPG supply could severely impact hotel and restaurant operations.

The concerns come after the Centre invoked provisions of the Essential Commodities Act through a gazette notification on Tuesday to ensure uninterrupted supply of domestic cooking gas and to prevent hoarding or black marketing amid fears of global supply disruptions.

While there is no immediate shortage reported in Kashmir, stakeholders say the emerging global situation has already sent alarm bells ringing across the hospitality industry, which is heavily dependent on commercial LPG for daily operations.

Domestic Supply Prioritised

A distributor associated with a leading LPG company in Kashmir, speaking on the condition of anonymity, said the latest guidelines indicate a strong priority for domestic consumers.

“Earlier, around 65 percent of the supply was through OTP-based delivery, but now the guideline is to ensure nearly 90 percent delivery through the DAC/OTP system, which means domestic consumers are getting priority,” the distributor said.

He said the company had also sought detailed data about commercial consumption from distributors.

“We have been asked to submit details of commercial consumers like hotels, hospitals and other establishments, including how much gas they use daily. We do not yet know what further steps will follow, but clearly the domestic sector is being safeguarded,” he said.

According to him, panic booking has increased significantly, creating temporary delays in delivery.

“Our infrastructure normally handles around 400-500 cylinders a day, but currently the demand has almost doubled. This is causing delays because OTP-based delivery itself takes time,” he said.

However, he maintained that there is no shortage of LPG supply at the moment.

“As of now, stocks are adequate, and vehicles from the plant are arriving regularly. People should not panic. Domestic supply is secure,” he said.

Petrol Pump Owners See No Immediate Impact

Petroleum retailers in Kashmir also say that, for now, fuel supplies remain stable.

Altaf Ahmad, a prominent petrol pump owner in Srinagar, said there has been no official directive restricting supply.

“We have not received any direction from the oil companies indicating a shortage. Supplies are coming normally and there is no cap on how much stock we can lift,” Ahmad said.

He said that petroleum retail systems were highly automated, making hoarding or black marketing difficult.

“The stock and sales of petrol pumps are monitored centrally. Everything is automated and tracked from company headquarters. There is practically no scope for black marketing,” he said.

However, Ahmad cautioned that if the global conflict escalates further, the situation could change.

“If the conflict continues and expands, it could affect transportation and fuel supply globally. That would have an impact on everything, not just petrol or diesel,” he said.

Hoteliers Fear Operational Crisis

While supply remains normal for now, the hospitality sector in Kashmir says even a temporary disruption in LPG availability could cripple the industry.

Chairman of the J&K Hoteliers Club, Mushtaq Chaya, said hotels and restaurants were almost entirely dependent on LPG for cooking.

“This is everything for our industry. If there is any shortage of LPG, hotels and restaurants cannot function,” Chaya said.

He urged the government to closely monitor the situation and ensure an uninterrupted supply to the sector.

“The government must examine this issue very minutely. There should be no shortage of gas or petroleum products. Otherwise the hospitality industry will suffer,” he said.

Chaya said the notification invoking the Essential Commodities Act itself indicates the seriousness of the situation.

“When such notifications come, it means the matter is serious. If a crisis emerges, the entire industry will be affected,” he said.

Chaya said that large hotels hosting dozens or even hundreds of guests daily cannot operate without commercial LPG.

“In homes people might manage with a limited supply, but hotels have 50, 100, or even 200 guests at a time. Without LPG, operations will simply stop,” he said.

Industry Watching Situation Closely

The hospitality industry in Kashmir, which only recently began recovering from years of economic disruptions, fears that any fuel supply crisis could trigger another setback.

Industry stakeholders say they are closely monitoring developments in the global situation while hoping that supply chains remain stable.

For now, authorities and suppliers maintain that stocks remain adequate, but stakeholders say the evolving geopolitical situation warrants careful monitoring to prevent any disruption to essential supplies.