LPG Shortage Fuels Black Marketing: Restaurants Face Heat

The disruption in global energy routes has begun to affect small food Restaurants in India. In Yusuf Sarai, New Delhi, two friends running a roadside food stall struggled for three days before they finally found an LPG cylinder. However, the distributor demanded ₹2,500 for it, nearly two-and-a-half times their usual cost. The ongoing conflict in West Asia has pushed fuel prices higher and directly impacted local vendors.

The closure of the Strait of Hormuz, a key global energy passage, has shaken supply chains across India. Industries and businesses that rely heavily on fuel have started feeling the pressure. Several restaurants have reduced their operations, while some factories in Gujarat have temporarily halted production. In many cities, traders have begun selling LPG cylinders through illegal channels.

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Restaurants struggle amid LPG supply disruption

The government has increased domestic LPG production by around 25% and assured citizens that households will not face shortages. Despite these assurances, commercial establishments continue to struggle with supply issues. In Delhi, the price of a 14.2-kg domestic cylinder has increased to ₹913, while commercial cylinder prices have risen to ₹1,884.50. Many small eateries still depend on domestic cylinders because they cost less than commercial ones.

Restaurant owners say official distribution channels are failing to meet their demand. As a result, many operators are purchasing cylinders in the black market at double or even higher prices. Some outlets have reduced their menus and limited operations to manage rising costs. The lack of clear communication from authorities has also created uncertainty within the industry.

Large food chains and cloud kitchen operators have also started facing operational challenges. Some businesses have temporarily closed outlets due to the rising cost of LPG and irregular supply. Industry bodies have advised restaurants to conserve fuel and adopt cost-cutting measures. If the situation continues, the food service sector may face serious difficulties in maintaining regular kitchen operations.

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