Commercial LPG Shortage May Force 60% Restaurants to Shut
India’s restaurant industry is facing a significant operational crisis due to shortages of commercial LPG (liquefied petroleum gas) cylinders, which threaten to disrupt food services nationwide. The National Restaurant Association of India (NRAI) reports that nearly 50-60 percent of restaurants could be forced to close within the next two to three days unless LPG supplies are restored.
Sagar Daryani, President of the NRAI and Co-founder and CEO of Wow! Momo Foods Pvt. Ltd. expressed that restaurants are doing their utmost to continue operations, but the situation is becoming increasingly difficult. He emphasized that shutting down operations would be a last resort for restaurant owners who remain committed to serving their customers.
Daryani noted that confusion about the availability of commercial LPG cylinders has caused panic across the industry. He noted a misalignment or ambiguity about whether commercial LPG supplies will continue, which has led to supply disruptions, hoarding, and black-market sales, with cylinder prices increasing by nearly 1.5x.
The impact of this shortage could be widespread, as around 80 percent of restaurants rely on LPG cylinders for cooking. Only about 20 percent of establishments have access to piped natural gas (PNG), which is predominantly available in large commercial complexes or malls.
Restaurants that utilize high-flame cooking methods, such as casual dining outlets, cloud kitchens, buffet restaurants, and fine-dining chains, are likely to be the most affected. Popular chains and restaurants that rely on large-scale cooking operations may face significant operational challenges if supplies remain limited.
Daryani also mentioned that transitioning to electric or induction cooking is not a practical, immediate solution. Most restaurant kitchens are designed for gas cooking, and equipment such as woks and high-flame burners cannot be used on induction systems. Additionally, many kitchens lack sufficient electrical load capacity to support such a transition.
Currently, Bengaluru and Pune are the most affected cities, with several restaurants already running out of LPG stock. Industry leaders indicate that although Delhi, Kolkata, and Chennai still have supplies for a few days, shortages may soon extend to other major cities, including Mumbai.
The crisis began after a government circular issued on March 5 prioritized LPG supply. Since then, many restaurants have reported difficulties in receiving commercial LPG cylinders and have been forced to seek alternative sources.
The Ministry of Petroleum and Natural Gas subsequently stated that domestic LPG supply to households has been prioritized, with additional production directed toward household consumption. A committee of oil marketing companies has also been formed to review supply requests from non-domestic sectors, including restaurants and hotels.
Industry bodies have reached out to the government, requesting urgent clarification and restoration of commercial LPG supply. Restaurant associations warn that if the situation does not improve soon, thousands of food establishments and businesses could temporarily shut down, negatively affecting workers, customers, and the broader food service sector across India.
