Food outlets across cities including Mumbai, Bangalore, and Coimbatore are reducing menus and operating hours amid LPG shortages.
Geopolitical tensions in West Asia and the shutdown of the Strait of Hormuz have disrupted LPG supplies, which account for 90% of India’s imports.
The petroleum ministry has directed oil companies to prioritise domestic LPG supplies, leaving commercial users such as restaurants facing shortages and price spikes.
Restaurants Introduce Crisis Menus, Shorten Hours as LPG Shortage Hits India’s Food Industry
Geopolitical tensions in West Asia and supply prioritisation for households trigger a commercial LPG crunch, forcing restaurants across major Indian cities to cut menus and reduce operating hours
Summary
Advertisement
Indian restaurants are facing a hard time following a shortage of liquefied petroleum gas (LPG) in the food chain segment. The National Restaurant Association of India (NRAI) has issued a notification asking its members to consider shorter operating hours and suspend or reduce items that require long simmering and deep frying to conserve gas.
The country’s food outlets are facing an acute shortage after geopolitical tensions in West Asia led to the shutdown of the Strait of Hormuz. West Asia provides 90% of India’s LPG requirement, and unlike crude stockpiles, India does not have LPG or liquefied natural gas (LNG) reserves.
As per reports, nearly half of Mumbai’s restaurant chains could be forced to shut down temporarily if the situation in West Asia does not improve in the next two days. Several restaurants are also shutting down in major cities including Mumbai and Bangalore, while others, including hotels in Coimbatore, are slashing their menus and focusing only on essential items.
Advertisement
The current crisis has emerged as the biggest challenge the industry has faced since the Covid lockdowns forced restaurants to shut, with many having to go out of business, leave the industry, and with chefs, delivery staff, and related roles witnessing layoffs.
According to a report by The Economic Times, reports of ‘severe’ shortages of LPG are coming from Mumbai, Pune, Aurangabad, and Nagpur. In an advisory released by NRAI on Tuesday, the association asked restaurant owners to ‘introduce limited crisis menus with faster cooking items’, prioritise ‘dishes that require lower gas usage’, and ‘communicate transparently with customers if menu availability is temporarily affected.’
The report noted that while larger establishments and five-star hotels usually have gas banks, smaller outlets that depend on daily supplies are the worst hit.
“If the situation escalates further and availability tightens significantly, the restaurant industry may face serious operational challenges,” NRAI president Sagar Daryani said in the advisory. The advisory also urged chains to coordinate with fellow restaurateurs on best practices.
Advertisement
The supply crunch began after March 5, when the Ministry of Petroleum and Natural Gas issued a notification asking to prioritise supplies of domestic cooking gas, stating that all public sector oil marketing companies (OMCs) must ensure LPG is supplied and marketed solely to homes.
Soon after, distributors curbed commercial LPG supplies to restaurants or hiked prices by up to 30%.
“In light of current geopolitical disruptions affecting global fuel supply, steps have been taken to enhance LPG production and prioritise its availability for domestic consumers and essential non-domestic sectors such as hospitals and educational institutions,” Indian Oil Corp said.
It also said requests from other non-domestic sectors will be reviewed by a committee of OMC executive directors and prioritised based on merit, necessity, and product availability.