The RAI has urged the Ministry of Petroleum and Natural Gas to ensure uninterrupted supply of commercial LPG cylinders for restaurants and food service establishments, warning that current supply constraints could disrupt operations across the sector.
The industry body has also appealed to major oil marketing companies, including Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, to maintain adequate commercial LPG allocation for food service businesses.
The appeal comes after communications from oil marketing companies indicated that LPG supplies are currently being prioritised for domestic consumers due to geopolitical disruptions impacting global fuel supply chains. While the retail body acknowledged the importance of safeguarding household energy security, it noted that the restrictions are creating operational challenges for restaurants and commercial kitchens that rely heavily on LPG for daily cooking operations.
According to RAI, the restaurant and food service sector plays a critical role in India’s urban food ecosystem, serving millions of consumers every day. These establishments provide meals to hospital staff, students in hostels, industrial workers, office employees, travellers, and customers using food delivery platforms.
The association warned that prolonged disruption in commercial LPG supply could lead to temporary closure of restaurants and commercial kitchens, interruptions in food services for hospitals and institutions, employment losses across the hospitality ecosystem, and operational stress for small and medium food businesses.
To mitigate the situation, RAI has requested the government to consider a minimum assured allocation of commercial LPG cylinders for restaurants and food service establishments, particularly those serving institutional needs such as hospitals, educational institutions, industrial facilities, and transportation hubs.
The association has also proposed establishing a structured coordination mechanism between industry bodies and oil marketing companies to address supply challenges during the current 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 added that it is willing to work closely with the government and industry stakeholders to identify practical solutions, including medium-term transitions to alternative energy sources such as piped natural gas and energy-efficient commercial cooking technologies, to ensure stability across India’s retail and food service sectors.
