RAI Requests Steady LPG Supply for Restaurants and Food Services
The Retailers Association of India (RAI) has urged the Ministry of Petroleum and Natural Gas and oil marketing companies to ensure uninterrupted commercial LPG supply for restaurants and food service businesses. Current prioritisation of domestic LPG due to global disruptions has created operational challenges for commercial kitchens across the country.
Recent communications from these companies indicate that LPG supplies are currently being prioritised for domestic use amid ongoing geopolitical disruptions affecting global fuel availability. While the sector supports the government’s measures to secure household energy, the restrictions have posed significant operational difficulties for restaurants and commercial kitchens that rely heavily on LPG.
Restaurants and food service establishments play a key role in India’s urban food system, serving a broad range of consumers such as hospital staff, students in hostels, industrial workers, office employees, travellers, and food delivery customers.
RAI highlighted that prolonged disruption in LPG supply could result in:
- Temporary closure of restaurants and commercial kitchens
- Disruption of food supply to hospitals, institutions, and workplaces
- Loss of employment across the hospitality and retail sectors
- Operational challenges for small and medium food businesses
The association has requested the government to ensure a minimum assured allocation of commercial LPG cylinders for restaurants and food service businesses, particularly those serving institutional clients such as hospitals, educational institutions, industrial facilities, and transportation hubs.
RAI has also suggested creating a structured coordination mechanism between industry bodies and oil marketing companies to manage supply challenges during the ongoing period of global fuel disruption.
“A prolonged disruption in LPG supply to restaurants and commercial kitchens could lead to the non-availability of food for millions of citizens who rely on these establishments for their daily meals, including students in hostels, individuals without adequate housing, and busy working professionals. Restaurants and food service businesses are integral to India’s daily food supply chain. Ensuring continuity of LPG supply will help maintain food availability while safeguarding livelihoods across the sector. At the same time, policy support such as GST exemptions and incentives on electric commercial cooking equipment, along with the promotion of bio-LPG and other alternative fuels, can help the sector transition toward more resilient and sustainable energy sources,” said Kumar Rajagopalan, CEO of the Retailers Association of India.
RAI expressed its readiness to work with the government and industry stakeholders to explore practical solutions, including medium-term transitions to alternative energy sources such as piped natural gas and energy-efficient commercial cooking technologies.
The association remains committed to working with policymakers to support the stability and growth of India’s retail and food service sectors.