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LPG Price Hike Bites: Delhi Eateries Struggle with Rising Costs, Supply Issues

Delhi's small eateries face closure due to LPG price hikes and supply shortages.

May 2
4 min read
LPG Price Hike Bites: Delhi Eateries Struggle with Rising Costs, Supply Issues

Top Summary

  • What happened: Commercial LPG cylinder prices surged by ₹993 for a 19-kg cylinder and ₹261 for a 5-kg cylinder in Delhi.
  • Why it matters: The price increase, combined with supply shortages and black market activity, threatens the survival of small food businesses.
  • What changes: Vendors are forced to shut down, switch to costlier alternatives like coal and electricity, or rely on expensive black market supplies.
  • Who is affected: Street vendors, small eateries, daily wage earners, and restaurant owners in Delhi are severely impacted.

LPG Price Hike Cripples Delhi's Small Eateries

A steep hike in commercial LPG prices has left Delhi's small eateries and roadside stalls struggling to stay afloat. Many vendors report that they lack the funds to buy larger cylinders and are unable to obtain smaller ones.

The rising fuel prices, erratic supply, and a growing black market are creating a perfect storm, making it increasingly difficult for these businesses to survive.

Erratic Supply and Soaring Prices

The price of a 19-kg commercial LPG cylinder increased by ₹993, bringing the rate in Delhi to ₹3,071.5. The 5-kg LPG cylinder also saw a ₹261 hike, now costing ₹810.5.

Vendors report that commercial LPG supply has been strained for weeks. This forces many to temporarily close their shops, switch to coal-fired stoves, or purchase domestic cylinders at inflated black market rates.

The Switch to Coal and its Consequences

Md Tazim, a breakfast stall owner in ITO, was forced to shut down for two weeks due to unavailability of commercial cylinders. He has now switched to coal to keep his business running.

 

"Isse health bhi kharab ho rahi hai,"

said one of his workers, coughing from the thick smoke rising from the coal stove.

 

Tazim reports that the crisis has already impacted his business, with many daily wagers returning to their villages.

Black Market Exploitation and Limited Options

For many vendors, access to cylinders is as much a problem as the high prices. Commercial cylinders are difficult to obtain through regular channels.

This forces vendors to rely on domestic LPG sold in the black market, often diverted and resold by middlemen at inflated prices, sometimes between ₹3,000 to ₹4,000.

Smaller Cylinders, Bigger Problems

Smaller vendors are finding it increasingly difficult to access even 5-kg cylinders, often the only affordable option for carts and kiosks.

Rakesh, a street food vendor near Sarai Kale Khan, says many small operators are considering leaving the city if conditions do not improve.

Electric Alternatives Offer Little Relief

Switching to electric alternatives provides little relief. Induction stoves sharply increase electricity bills, and frequent power cuts make them unreliable for cooking.

 

"Bijli ka bill alag se do guna aa jata hai. Aur bijli hogi tab na,"

said Rajneesh Rathore, a food stall owner in Jangpura.

 

Larger Eateries Feel the Squeeze

Even larger eateries are feeling the pressure. Sunny, who runs a restaurant in Lajpat Nagar, said a 19-kg commercial cylinder lasts barely two days in a full kitchen.

Black market rates have already reached ₹6,000 in recent weeks, and he anticipates further increases. His restaurant is now exploring pipeline gas as a long-term solution.

Restaurants Weigh Options, Consumers Brace for Impact

Anurag Katriar, trustee of the National Restaurant Association of India, said restaurants are trying to reduce LPG dependence by shifting to electric systems.

 

"We either have to absorb the hike or pass it on to consumers,"

he warned.

 

What to Watch Next

The government's response to the LPG crisis will be crucial in determining the fate of Delhi's small food businesses. Potential solutions include subsidies, improved supply chain management, and stricter enforcement against black market activities.