LPG Supply Shortage: Prices of food in restaurants may increase by 30%, break on global energy supply chain!

LPG Supply Shortage: If you have lunch or dinner in a restaurant with your family every week, then this hobby can now become more expensive. Yes, restaurants and hotels are facing a huge fall in the prices of commercial LPG cylinders. This problem has arisen due to the ongoing war in West Asia (conflict with Iran).

The global energy supply chain has been disrupted amid the conflict. Industry experts say that menu prices may increase by 20 to 30 percent from April. Such hikes are usually done in June and July. This is affecting restaurateurs in big cities like Bengaluru, Mumbai, Delhi, Chennai and Pune. On March 9, the supply of commercial LPG cylinders suddenly stopped. Many hotels got only 20 percent delivery, and then they closed completely.

A typical restaurant requires two to four commercial cylinders daily. Big restaurants need six to eight. Due to safety regulations, restaurants cannot stock cylinders. Running the kitchen has become difficult due to interruption in supply. Prices increased, cylinder prices became Rs 2,100-2,300. Coupled with the supply shortage, the price of a 19 kg commercial LPG cylinder is skyrocketing. Earlier this cylinder was available for Rs 1,650-1,850, now its price has increased to Rs 2,100-2,300. There is no buffer left now.

Siddharth, who runs a restaurant in Delhi’s Sarita Vihar, says that food, rent and salary are already expensive, and now it has become difficult to bear the gas crisis. The disruption in restaurant operations will have a direct impact on thousands of workers.

Preparation for 20-30% increase from April

Ajay, owner of Red Mirchi in Noida, said that restaurants usually increase prices in July. However, due to LPG crisis, there may be a 20-30% increase from April. The National Restaurant Association of India (NRAI) has also warned that if the supply does not improve, 50-60% of the restaurants may be closed in the next two to three days. Cloud kitchens and delivery providers will also be affected.

Government demands to increase domestic LPG production

The Petroleum Ministry said that geopolitical tension has affected global supply. Therefore, the country’s refineries have been ordered to increase LPG production. More production is being given to domestic consumers. Priority is being given to ensure availability of LPG in homes. A committee formed by the ministry will review the demand from restaurants and hotels.