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LPG shortage: Food delivery sector in crisis

India is facing a severe shortage of LPG (liquefied petroleum gas) due to the ongoing conflicts in the Gulf region, which has put online food delivery platforms Swiggy and Zomato in a major crisis. Many restaurants have stopped their operations or cut orders due to the shortage of LPG, which has significantly affected supply. As a result, the share value of Zomato's parent company Eternal and Swiggy has recorded a significant decline in the stock market.

Since about 90 percent of the restaurants in the country operate on commercial cylinders, the crisis is dealing a heavy blow to the hotel industry. Many restaurants in major cities like Delhi, Mumbai and Bengaluru have already closed. The National Restaurants Association of India (NRAI) has warned that if the crisis continues, 25-30% of restaurants will be at risk, which will severely affect the country's employment sector and lakhs of delivery workers (gig economy).

The main reason for the current shortage of cooking gas is the blockade of the Strait of Hormuz by Iran, which is crucial for fuel supply to India. Following this, the prices of domestic and commercial cylinders were increased. However, Union Petroleum Minister Hardeep Singh Puri clarified that there is no shortage of other fuels like petrol and diesel in the country and that sufficient crude oil imports have been ensured through alternative means. Although oil refineries have been asked to increase cooking gas production to address the crisis, the government is currently giving more priority to domestic needs than commercial needs.

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Gayathri

Date

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March 12, 2026

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