LPG supply squeeze hits restaurants

metro india news  I new delhi

A tightening supply of liquefied petroleum gas (LPG) in India is beginning to affect restaurants and several manufacturing sectors, raising concerns about higher input costs for consumer-facing companies.

Brokerage reports indicate that the country remains heavily dependent on imports to meet LPG demand. Around 60 per cent of India’s LPG requirement is imported and a large share of these shipments move through the Strait of Hormuz, a key global energy transit route. This makes LPG supplies particularly vulnerable to geopolitical tensions or logistical disruptions.

Although domestic production has increased in recent months, supplies remain under pressure. The government has prioritised LPG distribution for households and essential services such as hospitals, leading to restricted availability for commercial users including restaurants and certain industries.

Quick-service restaurant chains that rely on commercial LPG cylinders for kitchen operations could face operational challenges if the shortage persists. Industry checks cited in brokerage reports suggest many restaurants have less than a week’s worth of LPG inventory. Any disruption in deliveries could quickly affect their ability to serve customers, potentially impacting revenues. Some outlets are already reporting operational difficulties due to limited cylinder supplies.

The supply constraints are also affecting industrial users. Gas shortages have forced some glass manufacturers to scale down production. If glass output declines across the sector, prices could rise, which would increase costs for industries that depend on glass packaging, including alcoholic beverage companies.