New Delhi: India’s food and beverage service sector, still recovering from pandemic-era losses, is facing a fresh crisis as rising commercial LPG prices and supply disruptions disrupt operations nationwide.
Restaurants are struggling to cope with increasing fuel costs, rising staff wages, and shrinking margins, forcing many to reduce menus, cut staff, raise prices, or temporarily shut down.
LPG Shortages Disrupt Operations
Fuel, a major operating expense for restaurants, has become increasingly scarce and expensive. Small businesses are feeling the impact the most.
With commercial cylinders unavailable, many restaurateurs are relying on domestic LPG cylinders at inflated prices of Rs 3,000–4,000 per cylinder, or even using home cylinders to keep kitchens running. Similar struggles are reported across Delhi and other cities, with businesses switching to cheaper or faster-to-cook menu items to conserve fuel.
Many smaller eateries and street vendors are also increasing food prices to offset fuel costs. Consumers are beginning to feel the pinch as prices rise and availability drops.
Affordable meals that used to cost Rs 20–30 are no longer possible. The crisis follows two consecutive commercial LPG price hikes. The 19 kg commercial cylinder in Delhi now costs Rs 2,078.5, up Rs 195.5 from March.
Prices in other metro cities have seen similar increases, while domestic cylinders remain unchanged. The hikes are linked to a surge in international LPG prices, with Saudi Arabia’s benchmark rate rising 44 per cent from March to April.
While large restaurant chains can absorb some of the extra costs, smaller businesses, takeaways, and delivery-based operations are severely affected. Many have scaled down or temporarily closed, and job losses among cooks, helpers, and delivery staff are rising.
Industry experts warn that without immediate government intervention—including price relief, better supply coordination, and support for smaller operators—the crisis could trigger widespread closures and hamper post-pandemic recovery.
