Commercial LPG Stocks Low, Threatening Tamil Nadu Economy

Commercial LPG Stocks Low, Threatening Tamil Nadu Economy.webp

Chennai, March 11 Tamil Nadu Food Minister R Sakkarapani said on Wednesday that while domestic LPG supplies are stable for the next 20 to 25 days, the commercial segment is facing a severe shortage.

Speaking to reporters after a meeting with representatives from IOC, BPCL, and HPCL, he said: "For commercial use, the current stocks are only sufficient for two to four days."

According to him, a three-member committee from the oil marketing companies (OMCs) is investigating the distribution bottleneck in Delhi.

"A decision from the Government of India is expected shortly," Sakkrapani added.

He also clarified that petrol and diesel stocks are sufficient until the end of the month, and urged people to avoid panic buying at petrol stations. The minister warned that any instances of hoarding or black-marketing of cylinders would be met with "strict departmental action".

The crisis has severely impacted the state's Micro, Small and Medium Enterprises (MSME) and hospitality sectors, with industry bodies warning of a complete standstill if supply is not restored within 48 hours, said industry insiders.

S Vasudevan, President of the Tamil Nadu Small and Tiny Industries Association (TANSTIA), told reporters that nearly 3.5 lakh units – including fabrication and auto-component manufacturers – are unable to meet March financial year-end deadlines.

"Distributors are refusing to supply, and we cannot immediately switch to expensive alternative energy sources," he said.

Similar concerns were echoed by the Coimbatore District Small Industries Association (CODISSIA) and the Hotel Association.

V Rangaswamy, Vice-President of CODISSIA, noted that the peak wedding season is being hampered by the lack of commercial cylinders.

"We are hopeful that the Tamil Nadu government will be able to convince the central government to help us meet at least a fraction of our demand as soon as possible," Rangaswamy added.

Meanwhile, Sakkrapani added that the state government is considering industry requests for electricity subsidies and continuous power supply as a temporary alternative.

The growing LPG shortage in Tamil Nadu has transitioned from a logistical hurdle into a full-blown economic crisis, forcing the state's iconic hospitality sector to its knees and triggering a high-stakes political confrontation.

As the scarcity of commercial cylinders intensifies, many restaurant chains in the state have been forced to drastically reduce their operations, with many serving only a handful of items or shutting down kitchens entirely during peak hours.

This supply vacuum has created a ripple effect across the state. In Karaikudi, for instance, the desperate scramble for alternative fuel has driven the price of firewood to an unprecedented Rs 8,000 per tonne.

The crisis has become a primary battlefield for the state's political heavyweights, as DMK spokesperson T K S Elangovan directly linked the shortage to the Centre's foreign policy "failures" and the geopolitical instability in West Asia.

Highlighting the gravity of the situation, Elangovan, while talking to
 
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bpcl codissia commercial lpg firewood prices fuel distribution hospitality industry hpcl ioc lpg shortage micro small and medium enterprises msme oil marketing companies tamil nadu tamil nadu food minister tanstia
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