LPG Supply Shortage: Hotels, eating places, restaurants and street food businesses in cities are currently struggling with rising prices of commercial gas and interruptions in supply. Due to high price of gas cylinder and non-timely supply at many places, the cost of business is increasing rapidly.

If this situation continues for a long time, its impact will not only be limited to the kitchen, but can affect the entire food and beverage market and businesses worth thousands of crores of rupees.

How many thousand crores was the turnover earlier?

The food service sector including hotels, restaurants, eating places, catering and street food is a huge business in big cities. It is estimated that the annual turnover of the food service industry in medium and big cities is more than Rs 3 to 4 lakh crore. In a single big city, the turnover of hotels, eating places, food stalls and catering reaches approximately Rs 8 to 10 thousand crores annually. In this, the maximum expenditure is on commercial gas and kitchen operation.

Now how much impact can this have on the business?

Businessmen say that if the prices of commercial gas continue to rise. If supply problems persist, the food business may be significantly affected.

The profit of small hotels and dhabas may reduce by 20 to 30 percent.
Many small street food stalls may close.
The turnover of food business in cities may reduce by 10 to 15 percent.

Experts estimate that if this situation continues for a long time, the food sector across the country may suffer a loss of Rs 20 to 30 thousand crores.

Biggest crisis for small businesses

Expensive cylinders are having the biggest impact on small businesses. Big hotels and restaurants can manage the expenses to some extent, but for small dhabas and food stalls, the cost of each cylinder matters. Many dhaba owners say that they use 2 to 4 commercial cylinders a day. Earlier, gas expenses were manageable, but now they are eating up a large portion of business revenue.

Expectation of increase in prices of food items

If gas prices remain high, hotel and restaurant owners may be forced to increase the prices of food items. Due to this, the prices of many things may increase in the market.

Hotel and restaurant food may become more expensive.
The prices of Dhaba thali and breakfast may increase.
Sweets and bakery items may become more expensive.
Prices of street food like tea, samosas and kachori may also increase.

This means that commercial gas prices may gradually impact the pockets of common people.

Commercial gas crisis can cause many problems?

• Investment in food business may reduce.


• Small hotels and restaurants may close.


• The number of customers may decrease.


• Prices of food items may increase.

What is necessary to overcome this problem?

1. Regular gas supply – Gas agencies and administration should ensure that there is no interruption in supply.


2. Relief for small businesses – The government can provide relief for some time to those running small hotels and restaurants.


3. Use of alternative energy – Some big hotels can adopt induction or other energy options.


4. Stopping hoarding – If there is a shortage of artificial gas in the market, then it is necessary to take strict action.

What will happen next?

Right now, people associated with hotel and food business are worried that if the problems of price and supply of commercial gas are not resolved soon, it will affect the entire food sector.

Experts say that if this situation continues for a long time, this crisis will not be limited to the kitchen only, but will also affect food businesses worth thousands of crores of rupees and the pockets of common people.