The Karnataka state government has decided to allocate 20% of its daily commercial LPG supply to hotels and other commercial establishments to mitigate the severe supply crunch that has been affecting the hospitality sector for weeks.
State food and civil supplies minister KH Muniyappa announced that around 10,000 commercial cylinders would be supplied daily to hotels, restaurants, industrial canteens, and dhabas following discussions with oil marketing companies.
The decision comes as the hospitality sector struggles with a severe supply crunch that has disrupted operations for weeks, with industry representatives estimating losses of around ₹150 crore over the past three weeks.
The Centre has approved a total daily allocation of 16,105 commercial cylinders for Karnataka, with 4,200 going to educational institutions, 1,200 to public sector undertakings, and 500 to agriculture and allied sectors.
Supply levels are expected to improve modestly from after the announcement, with an expected restoration to about 50% of normal levels.
