In Kashmir Valley, LPG supply curbs leave tourism and hospitality sectors worried

The ripple effects of the escalating tensions involving Iran, the United States, and Israel are now being felt in the Kashmir Valley, where a disruption in LPG supply has triggered serious concerns among businesses, particularly those linked to the tourism industry. Gas agency dealers across the valley have stopped supplying LPG cylinders to commercial establishments such as hotels, restaurants, and roadside dhabas. The restriction has created fear among the people associated with the hospitality sector, which heavily relies on LPG for daily operations.

According to local dealers, the move follows government directions to prioritise essential institutions. As per the current instructions, LPG cylinders are being supplied only to hospitals and schools, leaving commercial users without fuel. “The ministry issued a circular directing us to temporarily stop supplying LPG to commercial establishments. As per the advisory implemented this week, we have been instructed to prioritise supply only for essential institutions such as hospitals and schools. We understand that this decision will impact key sectors in the valley, particularly tourism, restaurants, hotels and dhabas. However, we are receiving full support from the company, and we also have 5-kg LPG cylinders available, which can be used especially during the upcoming Eid. We are doing our best to ensure that people do not face difficulties during the festival. At the same time, I would urge the public to use LPG judiciously so that the available supply can benefit everyone.” said Harmilan Kour, MD Kashmir gas agency.

The development has dealt another blow to the tourism sector, which had only recently begun recovering from last year’s crisis following the Pahalgam terror attack in April 2025. The attack had severely impacted tourist inflow, pushing tourism activity in the region close to zero for several months. Industry stakeholders say that this year had initially brought hope for revival. Good snowfall during winter had started attracting visitors again, and the sector was gradually returning to normalcy just as the tourism season was beginning.

However, with the LPG supply crisis now affecting businesses across the valley, hotel owners and restaurant operators say they are once again staring at massive losses. “Our industry has already been under severe stress since last year. We suffered heavy losses in 2025, and this year we were finally hoping for some revival. Unfortunately, with this latest issue, we have already started receiving cancellations. The LPG crisis will lead to further losses as it directly affects our day-to-day operations. While we do keep some LPG stock as a backup, it usually lasts only about a week. Beyond that, it becomes extremely difficult to continue operations, and prolonged disruption could result in massive losses for businesses like ours,” said Sahil, hotelier.

Members of the tourism fraternity warn that if commercial fuel supplies are not restored soon, many establishments may be forced to shut operations temporarily, further affecting livelihoods dependent on tourism.