These stocks could be impacted due to commercial LPG shortage and restaurant decisions

Quick service restaurant (QSR), restaurant and food delivery stocks such as Jubilant FoodWorks, Westlife Foodworld, Devyani International, Swiggy and Eternal are expected to start Tuesday’s session lower.Restaurant associations from Bengaluru, Tamil Nadu, Maharashtra and Delhi have flagged that commercial LPG supplies to eateries have effectively stopped in several pockets. They have written to the Petroleum Ministry seeking immediate intervention.

The National Restaurant Association of India (NRAI) said restaurants currently have, at best, about a week’s worth of LPG stocks left.
In its communication to the ministry, the body said that the sector relies heavily on commercial LPG and warned that any prolonged disruption could push a large number of establishments towards shutdowns, even cautioning about what it termed “catastrophic” closures.Speaking to CNBC-TV18, the NRAI said there is a severe shortage of commercial LPG and that supplies may not last beyond a week. Restaurants may be forced to shut operations or reduce menu offerings where alternative fuel options are available.

The body has also formally written to the Ministry of Petroleum and Natural Gas.

Government sources told CNBC-TV18 that India is looking to secure additional LPG supplies from the US and Canada. They added that there are no plans to impose fuel restrictions at this stage.Authorities will ensure that industrial and commercial consumption is not disrupted, though domestic CNG supply will continue to get priority.

According to officials and industry bodies, the confusion appears to have begun after a March 5 government directive asking public sector oil marketing companies to prioritise domestic LPG supplies.

The Federation of Hotel and Restaurant Associations of India (FHRAI) said the wording of the order has created uncertainty at the distributor level, with some suppliers reportedly halting commercial LPG deliveries.

In Bengaluru, the Bangalore Hotels Association has warned that hotels could begin shutting operations from today, saying commercial LPG cylinder supplies stopped from March 9 despite earlier assurances from oil companies that there would be no disruption for 70 days.

The disruption could also have a spillover impact on food delivery platforms such as Swiggy and Zomato, as restaurant closures would directly affect order volumes and delivery activity.

The Ministry of Petroleum and Natural Gas said the government has set up a panel to assess fuel requirements for restaurants and the auto sector, and will attempt to allocate some LPG volumes to these segments.