Andhra Pradesh Hotel Industry Seeks Relief Amid LPG Shortage

The hotel industry in Andhra Pradesh is facing significant challenges due to a shortage of commercial liquefied petroleum gas (LPG) cylinders. A delegation from the Andhra Pradesh Star Hotels Association (ASHA) and the Hotel Association Joint Action Committee (JAC) met with Finance Minister Payyavula Keshav to discuss the implications of this crisis on the hospitality sector.

The delegation was led by RV Swamy, president of ASHA, and included members from the Vijayawada Hotels Association, such as Ramana, along with JAC representatives Ravi and Chaitanya. During the meeting, they emphasized the urgent need for government intervention to alleviate the LPG shortage affecting hotels, restaurants, and catering services.

While acknowledging the government’s focus on domestic LPG consumers, the representatives underscored the critical importance of commercial LPG for the daily operations of the hospitality sector. They requested that the government ensure that at least 50 percent of the required LPG cylinder quota be allocated to hotels and restaurants to prevent widespread closures.

The delegation highlighted the significant role the hotel industry plays in supporting thousands of jobs, including chefs, kitchen staff, suppliers, transport operators, and small vendors. They cautioned that a prolonged shortage could lead to severe employment losses across the sector. Furthermore, they expressed concern about the impact of the crisis on major tourist and pilgrimage destinations such as Visakhapatnam, Araku Valley, Tirupati, Vijayawada, and Amaravati, where hotels are essential for serving visitors.

In response to the ongoing crisis, the delegation proposed several measures to reduce LPG consumption. These included reducing operational hours for hotels, suggesting a closure time of 10 PM, similar to restrictions implemented during the Covid-19 pandemic. Minister Keshav also proposed exploring alternate-day operations, where different hotels could operate on different days to manage gas usage more effectively. Additionally, a ‘limited menu’ policy was suggested, particularly for star hotels that typically offer a wide variety of dishes, as a means to reduce fuel consumption.

Minister Keshav assured the delegation that he would bring their concerns to the attention of the Union Ministry of Petroleum and Natural Gas. He committed to discussing the matter with fellow ministers and senior officials before presenting it to the Chief Minister for a final decision.

The meeting highlights the critical intersection of energy supply and the hospitality industry, revealing the urgent need for a coordinated response to support both economic stability and employment in the region. As the situation evolves, the hotel industry continues to advocate for solutions that will allow them to sustain operations and support their workforce.