LPG Shortage Hits India’s Eateries and Food Delivery Stocks
A shortage of commercial LPG cylinders in India is causing food delivery and restaurant stocks to plummet. The crisis, affecting major cities and states, threatens to shut down operations unless resolved. Reports highlight severe shortages, impacting 50% of hotels and restaurants in Mumbai.
- Country:
- India
The food delivery and restaurant sector in India faces significant disruptions as a shortage of commercial LPG cylinders leads to declining stock prices and fears of operational shutdowns. Swiggy's stock dropped by 2.26%, while other major players such as Jubilant FoodWorks and United Foodbrands also recorded losses.
The crisis stems from the government's revised priority order for domestically produced natural gas, categorizing LPG alongside CNG and piped cooking gas. This shift resulted in a supply crunch for hotels and restaurants heavily reliant on market-priced commercial LPG.
Pradeep Shetty of FHRAI warns that unless the situation is rectified within two days, nearly half of Mumbai's hospitality sector could be forced to close temporarily. The shortage has disrupted operations in regions including Delhi, Karnataka, and Telangana.
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