LPG Crisis Bites Chennai, Restaurants Reel Despite Supply Boost

LPG cylinder shortage is hitting Chennai's food and hospitality sector hard, forcing restaurants and small eateries to scramble for supplies, slash menus and, in some cases, turn to the black market to keep their kitchens running. 

Despite the Centre announcing a 50 per cent increase in commercial LPG allocation to ease the strain, industry players say the crisis is far from over, with supplies yet to stabilise fully.

Rajesh (name changed) who runs a popular chain of restaurants in the city buys LPG commercial cylinders from the black market at three times the cost. "I pay up to Rs 7000 for a cylinder. The supply we get now is only 1/4th of what we really need and we are left with no other option but to buy cylinders in black."

Japtej Ahluwalia, who runs the FUFU Restaurant at Alwarpet, has also put in place a drastic menu changes to reduce LPG consumption. For instance, pizza is off the menu. 

Ahluwalia, who's also the Managing committee member of the National Restaurants Association of India says, "Pizza is a guzzler. We offer more salads now and tandoor. We could use the coal oven for this."

A few kilometres away, Venkatesh V, who runs a small cafe "Wave," says the LPG shortage, coupled with price hike could impact his slender returns. "This shortage and price hike cause a dip in margins" he said. 

He further said that unlike restaurant chains that could go for centralised cooking, stand-alone cafes like his need uninterrupted LPG supply to keep fires burning. 

Many like Venkatesh say the only option for them is to lay their hands on domestic cylinders from friends and families, which is illegal and could mount pressure ultimately on domestic consumers.

Amid a worsening LPG shortage, Tamil Nadu Chief Minister MK Stalin has stepped up his attack on the Centre, accusing it of using the delimitation issue to divert attention. He said references to a possible Covid-like situation by the Prime Minister have triggered panic, with restaurants shutting and jobs at risk.

The BJP has rejected the charge, while its ally All India Anna Dravida Munnetra Kazhagam (AIADMK) questioned the state, prompting Stalin to argue that cylinder supply and foreign policy are controlled by the Centre.

Earlier, MK Stalin had listed how his government reached out offering subsidies, loans and exemption from pollution control norms for commercial establishments and industries to electrify their energy requirements. 

Many food and eatery businesses remain under strain. They hope the government will step in to ensure the enhanced allocation will restore normal operations.

(With inputs from Sagarika R.)