NRAI flags LPG supply disruption at restaurants, urges govt to ensure availability of commercial cylinders

NRAI flags LPG supply disruption at restaurants, urges government to ensure commercial cylinders

• NRAI warns of potential commercial LPG supply halt to restaurants
• LPG disruption may force restaurant closures
• NRAI urges government to ensure uninterrupted LPG for restaurants

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The National Restaurant Association of India (NRAI) has flagged concerns over a potential disruption in LPG supplies to restaurants and urged the government to ensure continued availability of commercial cylinders used by the sector.

In a letter dated March 7 to Petroleum and Natural Gas Minister Hardeep Singh Puri, the industry body warned that suppliers across the country have indicated that deliveries of commercial LPG cylinders to restaurants may be halted following a recent government directive prioritising domestic cooking gas supply.

The association said the concern stems from a March 5 order issued by the Ministry of Petroleum and Natural Gas directing public sector oil marketing companies to ensure LPG is supplied to domestic consumers.

“The restaurant industry is predominantly dependent on commercial LPG for its operations. Any disruption therein will lead to a catastrophic closure of majority of restaurants,” NRAI said in the letter.

According to the industry body, the directive has created uncertainty among distributors and suppliers, with several indicating that commercial cylinder deliveries may be stopped in order to comply with the ministry’s order.

NRAI warned that disruptions in supply could have wider implications beyond the restaurant industry.

“This in turn will have a severe negative impact on citizens for non-availability of food for their daily meals,” the association said, noting that food supply was treated as an essential service during the Covid-19 lockdowns.

NRAI president Sagar Daryani said the association is also escalating the issue with other parts of the government.

“We have written to the Petroleum Ministry and will also be writing to the Commerce & Industry Ministry,” Daryani told Moneycontrol.

The NRAI represents more than 500,000 restaurants across India and estimates the sector’s annual turnover at around Rs 5.7 lakh crore, employing over 8 million people directly.

The letter has also been copied to senior officials in the Ministry of Petroleum and Natural Gas, including the secretary and the director for LPG. The government has not yet publicly clarified whether commercial LPG supplies will be restricted.