LPG crisis hits Delhi-NCR hospitality sector: Restaurants, cloud kitchens threaten shutdown
The National Restaurant Association of India (NRAI) warned that many restaurants in Delhi-NCR have only two to three days of LPG stock left
The LPG supply crunch amid global geopolitical tensions has hit the hospitality industry in the Delhi-NCR region with many small restaurants and cloud kitchens threatening to shut down within a week. The hospitality hub, Delhi-NCR, is feeling the brunt more due to distribution bottlenecks and panic buying. The National Restaurant Association of India (NRAI) warned that many restaurants in Delhi-NCR have only two to three days of LPG stock left, raising fears of temporary closures if supplies are not restored quickly.
While all major restaurants in NCR region, including Gurugram, Faridabad, Noida and Ghaziabad, are dependent on PNG supply, there are roughly over 1.5 lakh establishments that are dependent on commercial LPG cylinders, the supply of which has been disrupted.
“We are getting desperate calls from smaller hotels and restaurants across Delhi-NCR, highlighting how they have been hit and see no respite. There is evident hoarding as cylinders are available in the black market but at exorbitant rates. The government needs to step in or many establishments will shut down in the next two days,” said an office bearer of NRAI.
These cylinders are being sold for as high as Rs 4,500 in the black market in Gurugram, Rs 4,200 in Faridabad and over Rs 5,000 in Noida and Ghaziabad.
“There are no commercial cylinders available right now through booking. We have been getting orders from oil companies not to go ahead with commercial bookings anymore. The situation will ease out in a day or two, but panic has gripped the small restaurants and kitchen who are now hoarding or going to the black market. They are trying to buy cylinders in black from our official delivery trucks,” said a gas agency owner from MG Road, Gurugram.
“This came as a sudden shock to us. Until two days ago, there was no such thing, and we were told yesterday by our HP gas agency that they will not take bookings for commercial cylinders anymore. We tried getting cylinders from a wholesale vendor, but even he refused to sell on the normal rate. I have managed to get four cylinders for 15,000, which will run my cloud kitchen for say next few days. Many who haven’t got any have shut down operations or considerably reduced menu options,” said Suraj Bhatia a cloud kitchen owner from Gurugram Sector 56.
Oil marketing companies increased LPG cylinder prices on March 7, citing a rise in international fuel costs. The price of a domestic 14.2 kg LPG cylinder in Delhi has gone up by Rs 60 to Rs 913, while commercial 19 kg cylinders have become costlier by Rs 114.50 and now cost Rs 1,883. To manage the surge in demand and prevent hoarding, the Ministry of Petroleum and Natural Gas has tightened refill rules. The minimum gap between two domestic LPG bookings has now been increased from 21 to 25 days.
LPG distributors across parts of the Delhi-NCR reported a sharp rise in bookings as residents rushed to secure cylinders. Several agencies say demand has surged by nearly 50 per cent, leading to delivery delays of two to three days in many areas.
