Commercial LPG price hike, supply crunch push restaurants to brink

Nagpur: A sharp surge in commercial LPG cylinder prices from May 1, coupled with an ongoing supply crunch and alleged black marketing, has pushed restaurants and eateries in Nagpur into a deep financial crisis. Industry stakeholders warn that the situation is becoming unsustainable, forcing many businesses to rethink operations and pricing.

The price of a 19-kg commercial LPG cylinder has skyrocketed to Rs3,248, a steep jump from Rs2,059 earlier, and significantly higher than the pre-crisis level of Rs1,944. The sudden hike came at a time when eateries are already grappling with irregular supply and dependence on black market purchases to keep kitchens running, say stakeholders.





According to multiple sources, commercial cylinders are being sold in the black market for Rs3,500-Rs4,500 per cylinder. With the official price already high, there are concerns that illegal market rates may climb even further, worsening the burden on small and medium-sized food businesses.

Restaurant owner Rahul Gupta said the rising costs are leaving operators with limited choices. "The price hike directly impacts our margins. The only way forward now is to cut down the menu," he said.

Another hotelier, requesting anonymity, pointed out that supply has not fully normalised despite official claims. "Black marketing is still happening on a large scale. Even after reducing consumption, some establishments still require four to five cylinders daily. This alone increases operational costs by around Rs5,000 per day," he said.

Hotelier Sharique Hafeez highlighted how the crisis has forced a shift in energy sources. "Due to the LPG shortage and rising prices, we moved to diesel burners and induction cooking. However, this also raises costs. At the same time, changes in solar policies have made our renewable investments non-effective," he said.

Bablu Tiwari, state president of the LPG Dealers Association of India, however, maintained that supply in Nagpur is currently adequate.
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