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LPG Shortfall Squeezes India’s Food Businesses Despite Boosted Allocations

Reliance on Hormuz transit leaves small kitchens facing higher costs and slower service.

Overview

  • Conflict in West Asia has choked LPG shipments through the Strait of Hormuz, cutting commercial supplies to restaurants across Indian cities.
  • Delhi’s food supplies minister said business allocations rose to 50% of average use, lifting daily allotments from 1,800 to 4,500 cylinders, yet many outlets still report empty racks.
  • Black-market prices have surged, with cylinders that usually cost ₹1,000–1,500 now selling for ₹3,000–4,500, and some Mumbai owners citing ₹4,000–6,000.
  • Small eateries in Delhi and Goa are trimming menus or shifting to coal, wood, or induction, which slows cooking and has led to layoffs and dropped fried items.
  • Restaurants that already rely on induction, clay ovens, deck ovens, or wood report steady service, underscoring how a chokepoint that carries nearly 90% of India’s LPG can upend the informal food economy.