The US-Israel-Iran war tensions have begun to affect the Indian market. Restaurants, eateries, and bakeries across Pune have started partially or fully halting operations due to a shortage of commercial LPG cylinders. Industry representatives said the shortage has significantly impacted the city’s food businesses.
Government prioritization of household LPG supply has made it difficult for commercial establishments to obtain cylinders for daily operations. The disruption could impact not just restaurants, but also essential services such as schools, hospitals, and corporate cafeterias.
Industry representatives have stated that the current situation is at odds with recent reports indicating there is neither a ban nor a shortage of commercial LPG in the market. They claim that, in reality, many businesses are facing a lack of available cylinders. The restaurant association has called on authorities to implement a rationing system for the supply of commercial LPG rather than stopping it entirely. They cautioned that an extended disruption could result in widespread business closures and substantial economic losses in the hospitality industry.
The LPG shortage could affect food delivery platforms like Swiggy and Zomato, as reduced restaurant operations may impact orders and revenue. The National Restaurant Association of India (NRAI) has urged the government to ensure continuous commercial LPG supply, warning that prolonged disruptions could lead to closures and disrupt essential food services.
The geopolitical repercussions of the Iran-US-Israel conflict are starting to impact Pune's kitchens, both commercial and residential. Restaurants and eateries throughout the city are experiencing a reduced supply of 19-kg commercial LPG cylinders, and residents are facing increased difficulty in booking domestic gas due to new restrictions implemented on March 5.
A BPCL official said the company is monitoring LPG stocks and prioritising domestic supply. “There is no major issue as of now,” the official said, noting commercial LPG constraints are linked to the Middle East conflict. “Supply restrictions on commercial LPG depend on how long the war continues.” The official added that the government has directed refiners to focus on propane and butane for cylinders, limiting industrial use, and that a waiver to purchase Russian crude should help stabilise supply.