- National Restaurant Association of India raised concerns over LPG supply disruption for restaurants
- Government order directs LPG supply solely to domestic consumers, causing distributor confusion
- Shortage of commercial LPG cylinders reported in major cities affecting restaurant operations
The National Restaurant Association of India (NRAI) has written to Petroleum and Natural Gas Minister Hardeep Singh Puri raising concerns that a recent government directive on LPG supply could disrupt the availability of commercial cooking gas for restaurants across the country.
In a letter, the industry body urged the government to ensure continued supply of commercial LPG cylinders, warning that any disruption could severely affect restaurant operations and food services.
"The restaurant industry is predominantly dependent on commercial LPG for its operations. Any disruption therein will lead to a catastrophic closure of the majority of restaurants," the association said in the letter.
The NRAI said the concerns stem from a government order issued by the Ministry of Petroleum and Natural Gas directing public sector oil marketing companies (OMCs) to ensure that LPG is supplied and marketed "solely to consumers of domestic LPG only".
According to the association, the wording of the directive has triggered confusion among distributors. "Immediately after the issue of this order, suppliers across the country have indicated that the supply of commercial LPG cylinders to restaurants would be, therefore, stopped," the letter said.
The NRAI warned that such a move could have wider consequences beyond the restaurant industry.
"This in turn will have a severe negative impact on citizens due to the non-availability of food for their daily meals," the association said, adding that food supply had been recognised as an "inescapable essential service" even during the Covid lockdowns.
The restaurant industry body said it represents more than 5 lakh restaurants across India and a sector with an estimated annual turnover of Rs 5.7 lakh crore. The industry also provides direct employment to over 80 lakh people and supports several allied sectors, including agriculture, food processing and logistics.
The conflict in the Middle East has also pushed up LPG prices after disruptions in key shipping routes such as the Strait of Hormuz. Domestic LPG cylinder prices were increased by Rs 60 and commercial cylinders by Rs 115 last week.
At the same time, the government has invoked emergency powers under the Essential Commodities Act to ensure an uninterrupted supply of cooking gas for households and directed refineries to ramp up LPG production to meet domestic demand.
The association has requested the government to intervene and ensure uninterrupted availability of commercial LPG cylinders so that restaurants can continue their operations and provide food services.
Hotels and restaurants in cities including Bengaluru, Chennai and Mumbai have recently flagged shortages of commercial LPG cylinders, warning that their kitchens could face shutdowns if the situation persists.
Industry representatives in these cities have reported delays in deliveries and limited availability of cylinders, with some establishments saying they had been forced to ration LPG use or explore alternative cooking arrangements.
The Centre has acknowledged the concerns and said steps are being taken to stabilise supply. The government has invoked provisions of the Essential Commodities Act to ensure uninterrupted availability of LPG across the country and has directed oil companies to prioritise supply for domestic consumers.
The government has also said refineries are working to increase LPG production while additional supplies are being arranged to manage the surge in demand.
The supply pressure comes as geopolitical tensions in Western Asia have disrupted shipping routes and pushed up international energy prices. The developments have already led to price hikes in LPG cylinders, with both domestic and commercial cooking gas becoming costlier in recent weeks.
Against this backdrop, restaurant industry representatives say clarity on policy and assured supply of commercial LPG are essential to prevent disruptions to food services and business operations nationwide.
