Over 20% Hotels In Navi Mumbai, Raigad Shut As LPG Shortage Hits Hospitality Sector

Navi Mumbai: More than 20 per cent of hotels in Navi Mumbai and Raigad have shut down due to an acute shortage of LPG cylinders, with hoteliers claiming that cylinders are being sold in the black market at rates starting from Rs 3,000.

The shortage has disrupted operations across the hospitality sector, forcing several establishments to suspend kitchen services as regular supply channels have slowed down. Hoteliers say the situation has made it difficult to continue daily operations.

According to industry estimates, there are around 2,500 small and big hotels across Navi Mumbai and Raigad districts. However, only about 30 per cent of these establishments have access to pipeline natural gas (PNG), while the remaining hotels depend entirely on LPG cylinders for cooking.

Dayanand Shetty, president of the Navi Mumbai Hotel Owners Association, said that hotels with PNG connections have also received an advisory from the gas supplier warning of potential disruptions.

“We have received a mail stating that due to prevailing geopolitical developments affecting global energy markets, there is increased uncertainty in the availability of LNG supplies. While normal PNG supply is being maintained for now, there is a possibility of partial or complete stoppage of PNG supply to industrial and commercial customers if the situation worsens,” Shetty said, adding that the communication was issued as a precautionary advisory to help establishments prepare for any eventualities.

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He said the situation is even more challenging than during the pandemic. “During the COVID period, at least food grains were available and we could manage to feed our staff. Now the priority for hotel owners is to ensure that our employees get meals first,” Shetty said.

On average, each hotel requires one to two LPG cylinders daily to operate its kitchen. With supply dwindling and prices rising in the black market, many hoteliers say running their establishments has become financially unviable.

Hotel owners have urged authorities to ensure adequate supply of LPG cylinders to prevent further closures and safeguard the livelihoods of thousands of workers dependent on the hospitality sector.