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Home BUSINESS

LPG ‘crunch’ eats into eateries’ business, coal price spikes; anti-hoarding raids in UP, K’natka

Press Trust of india by Press Trust of india
March 14, 2026
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Niti Aayog working on proposal ‘to replace LPG subsidy with cooking subsidy’
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New Delhi:  Eateries have cut their menus, increased prices, while many have moved to coal to surmount the LPG crisis, even as two Indian ships carrying the domestic gas from the Gulf countries crossed the Strait of Hormuz early on Saturday morning.

LPG carriers Shivalik and Nanda Devi are now headed to Mundra and Kandla ports in Gujarat, Rajesh Kumar Sinha, Special Secretary in the Ministry of Shipping, told a media briefing.

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The vessels are carrying 92,700 tonnes of LPG, he said, adding Shivalik is likely to reach Mundra on March 16, and Nanda Devi is likely to dock at Kandla the next day.

The West Asia conflict has impacted the supply of crude oil and petroleum products, following the closure of the Strait of Hormuz, a narrow water passage between Iran and Oman.

In Delhi, large corporate gatherings and group parties are now taking a backseat in restaurant calendars, as eateries scale back menus and bookings amid the crunch.

Restaurant owners, particularly in Connaught Place, one of the city’s busiest dining hubs, said that preparing food for large tables requires significant gas usage, prompting many establishments to temporarily halt big party bookings while focusing on regular diners.

Paramjeet Kaur, owner of Flavours of China, said the restaurant has scaled back certain offerings and limited group bookings to manage LPG consumption.

“We have had to make a few adjustments to manage the situation. For instance, we are currently not offering sizzlers as they require continuous and high flame usage. We have also trimmed our menu and are focusing only on basic dishes that can be prepared with limited gas consumption,” she said.

State authorities cracked down on hoarding and booked several people.

The Karnataka Food and Civil Supplies Department seized 316 domestic LPG cylinders allegedly being used for commercial purposes.

A case was registered against a gas agency shop in KGF, Kolar district, which was conducting illegal refilling of gas cylinders, a state authority said.

Uttar Pradesh’s Food and Civil Supplies Department conducted raids at 1,483 locations here and arrested six people in an operation to check black marketing of cooking gas.

The raids were conducted on Friday, leading to the registration of 24 FIRs.

LPG distribution centres in Kolkata and several districts of West Bengal witnessed large queues at the doors of gas agencies.

In Kolkata, the Enforcement Branch teams inspected at least 25 centres, including those in Lake Gardens and Jodhpur Park, to verify gas stock.

Kamarhati Municipal Councillor Bimal Saha distributed cow dung cakes to people standing in queues outside LPG dealerships, in what he termed a symbolic protest against the “shortage of cylinders.”

Several restaurants and eateries have reduced meal options on the menu, with many switching to wood and charcoal-based cooking.

A section of autorickshaws running on LPG was also off the roads and in the adjacent districts, owing to “irregular supply” at the filling stations.

Hotels and restaurants operating in Chennai and parts of Tamil Nadu have commenced using alternative methods to keep the business running.

A top official of a city-based popular restaurant chain told PTI, “We have moved to using induction stoves. Most of our branches are using this facility now, as we have adequate infrastructure to prepare the food on the induction stoves.”

In Bhopal, the Confederation of All India Traders (CAIT) urged the Madhya Pradesh government to immediately restore a limited supply of commercial LPG cylinders to prevent the “complete shutdown” of the hospitality and food service sector.

The traders’ body warned that if the supply is not restored within days, the entire hospitality sector in the state capital could face closure.

In Kerala, the gas crunch has triggered an exodus of migrant workers to their native places, as Ramzan approaches and elections loom in West Bengal and Assam.

The Tamil Nadu government has announced a subsidy of Rs 2 per unit of electricity for restaurants, hotels and tea shops that switch to electric stoves.

“This subsidy will remain in effect as long as the commercial LPG usage restrictions announced by the Centre are in place,” Additional Chief Secretary J Radhakrishnan said.

In Rajasthan, there is a surge in demand for coal, with several dhabas and small eateries switching to traditional coal-fired “bhattis”.

“The demand has certainly increased in the last three to four days in the wake of the shortage of commercial cylinders. Dhabas and restaurants in the walled city are the main buyers right now,” Deepak Khandelwal, a coal trader in the city, said.

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Two more Indian ships safely cross Strait of Hormuz, 22 others on standby

Press Trust of india

Press Trust of india

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