An acute shortage of liquefied petroleum gas (LPG) has begun to disrupt the hospitality sector in Kannur district of Kerala, forcing several hotels to suspend operations and pushing dozens more toward possible closure. The crisis, triggered by supply disruptions linked to escalating geopolitical tensions in West Asia, has created serious operational challenges for restaurants and small eateries that depend heavily on commercial LPG cylinders for daily cooking.
Industry representatives warn that if the situation continues for even a few more days, the economic consequences could be severe for both business owners and thousands of workers employed in the sector.
Hotels Begin Shutting Down
The shortage has already forced a number of establishments to close their kitchens temporarily. Among the affected businesses is Ghazal Hotel, a well-known eatery in Kannur city, which reportedly shut down operations after running out of LPG cylinders. Several other hotels have also stopped serving customers due to the inability to secure sufficient gas supplies.
Hotel manager Manoj Kumar said that supply disruptions have become critical in the past few days.
“For the last two days there has been no delivery of commercial LPG cylinders. We had no option but to shut down operations,” Kumar said. “Today we have only one cylinder left, which we are using to cook meals for more than 30 staff members.”
Many restaurants rely on a steady supply of commercial LPG cylinders to prepare food throughout the day. Without reliable access to fuel, kitchens are unable to maintain normal operations.
Rising Costs Add to the Crisis
Some hotels have attempted to find alternative cooking methods such as firewood, but even those options are becoming increasingly expensive. Restaurant owners say the sudden surge in demand for firewood has driven prices higher, making it an impractical long-term solution.
Many employees working in these establishments are migrant workers from other states. Hotel managers fear that if businesses remain closed for an extended period, these workers may leave in search of alternative employment, further worsening the labour shortage faced by the hospitality sector.
Allegations of Black Marketing
Hotel owners in Kannur have accused certain gas distributors of exploiting the shortage by sharply increasing prices for commercial LPG cylinders. According to industry sources, the price of a commercial cylinder has surged dramatically in recent days.
Restaurant owner Niketh Balan said his establishment normally requires at least three cylinders per day to function smoothly.
“Earlier we were purchasing a commercial LPG cylinder for around ₹1,800. Now some distributors are demanding more than ₹3,000 for the same cylinder,” Balan said. “We refused to buy cylinders at such inflated prices.”
Several business owners have also alleged that certain agencies are diverting supplies to the black market, selling cylinders illegally at much higher rates. These allegations have intensified calls for stronger government oversight and enforcement action against distributors who may be taking advantage of the supply crisis.
Authorities Conduct Inspections
Meanwhile, government officials have begun conducting inspections to ensure that LPG distribution rules are being followed. Authorities have been checking whether restaurants or small eateries are illegally using domestic LPG cylinders, which are subsidised and intended strictly for household use.
A tea shop owner near the Kannur old bus stand said officials recently visited his establishment to verify the type of cylinders being used.
However, several restaurant owners argue that enforcement should focus more on distributors suspected of black marketing rather than small businesses struggling to keep their kitchens operational.
Industry Warns of Wider Economic Impact
According to the Kerala Hotel and Restaurant Association, the situation could escalate into a serious economic crisis if LPG supplies are not restored quickly.
District president Bupesh K. warned that many establishments may be forced to shut down within the next few days if commercial gas deliveries do not resume.
“There is currently no gas filling taking place, and distributors are refusing to supply commercial cylinders,” he said.
Hotels in Kannur typically use between two and six LPG cylinders daily, depending on their size and customer volume. With supplies restricted and prices rising sharply, several restaurants have already started modifying menus or reducing service hours in an effort to conserve fuel.
Industry estimates suggest that nearly 20,000 workers in the district depend directly or indirectly on the hospitality sector. A prolonged shutdown could therefore affect thousands of families who rely on restaurants and eateries for their livelihood.
Migrant Workers Also Affected
Apart from business owners and employees, the crisis is also affecting migrant workers who depend on small hotels and roadside eateries for affordable daily meals.
Restaurant associations say that the closure of multiple establishments could create difficulties for workers who rely on these eateries as their primary food source.
Government Response
District Supply Officer K.N. Bindu acknowledged the supply restrictions but said domestic LPG availability remains stable.
According to officials, companies have assured that household LPG cylinders will remain available until at least the end of March. However, the supply of commercial LPG cylinders has been temporarily restricted due to the broader supply situation.
Authorities have instructed Taluk Supply Officers to inspect gas agency warehouses and ensure that distributors are not engaging in illegal sales or diverting cylinders into black markets.
The government is expected to closely monitor the situation over the coming days as pressure from industry groups continues to mount.
A Sector Waiting for Relief
For now, restaurant owners in Kannur remain uncertain about when normal LPG supplies will resume. With kitchens dependent on uninterrupted fuel deliveries, even short disruptions can bring operations to a halt.
Unless supply stabilises soon, many businesses fear that the hospitality sector in the district could face one of its most challenging periods in recent years.
