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Rising geopolitical tensions in the Middle East are beginning to impact energy supply chains globally, and the effects are now being felt in India as well. In several cities, shortages of commercial LPG cylinders and rising prices are creating serious challenges for restaurants, hotels, and roadside eateries (dhabas).

Traders and business owners claim that the price of a 19-kg commercial LPG cylinder has surged to nearly ₹3,000 in some areas, nearly double its usual rate. Meanwhile, domestic LPG cylinders are reportedly being sold in the black market for ₹1,600 to ₹2,000.

The situation has sparked concerns among small food businesses, many of whom say that continued supply disruptions could force them to shut down operations or raise food prices.

Supply Issues Affect Restaurants and Dhabas

In several parts of Delhi and surrounding regions, restaurant owners say they are struggling to get regular LPG cylinder deliveries. According to business operators, obtaining commercial cylinders has become increasingly difficult over the past week.

Many owners claim that even after booking cylinders, they are facing long waiting periods before delivery. In some cases, cylinders are reportedly not being delivered on time despite confirmed bookings.

Small eateries, which depend heavily on LPG for cooking, are particularly vulnerable to these disruptions. Without reliable gas supply, maintaining daily kitchen operations becomes challenging.

Restrictions on Commercial LPG Use

According to traders, the problem intensified after new restrictions were introduced around March 5 regarding the use of commercial LPG cylinders. These limitations appear to have affected supply in several locations.

Earlier, restaurant owners say, commercial cylinders were easily available through distributors. However, after the restrictions, supply has tightened significantly, forcing businesses to look for alternative options.

Some restaurant owners report that they now have to wait several days after booking a cylinder, which was not the case earlier.

Black Marketing of LPG Cylinders Increasing

With supply tightening, black marketing of LPG cylinders is reportedly increasing in some areas.

Business operators claim that cylinders that previously cost around ₹1,500 are now being sold for as much as ₹3,000 in certain markets. The sharp rise in prices is putting significant pressure on small businesses that rely on LPG as their primary cooking fuel.

For dhaba owners and small restaurant operators, this sudden increase in operational costs could severely impact profitability.

“If gas prices remain this high, it will become extremely difficult to run our businesses,” some traders said.

Impact on Food Prices

Industry experts warn that rising LPG costs could eventually lead to higher food prices. Restaurants and small eateries operate on thin profit margins, and any sharp increase in fuel costs directly affects their expenses.

If the supply situation does not improve soon, food businesses may have no choice but to pass on the increased costs to customers.

This could result in higher prices for everyday food items served at restaurants, roadside eateries, and local food stalls.

Businesses Turning to Alternative Cooking Methods

Due to the shortage, some restaurant operators are experimenting with alternative cooking methods such as induction cooktops or electric equipment.

However, many business owners say these solutions are not practical for large-scale cooking, especially in busy restaurants and dhabas where food needs to be prepared quickly in large quantities.

Electric cooking systems also require higher power consumption and may not always provide the same efficiency as LPG.

Traders Urge Government Intervention

Restaurant and dhaba owners are now urging the government to restore the normal supply of commercial LPG cylinders as soon as possible.

They are also demanding strict action against black marketing to prevent illegal price hikes.

According to traders, if the current situation continues for a longer period, many small food businesses may be forced to shut down, particularly those that rely heavily on affordable cooking gas to operate daily kitchens.

While authorities continue to monitor the situation, industry players say that ensuring steady LPG supply will be critical to protecting small food businesses and preventing further disruption in the hospitality sector.