Mumbai, Maharashtra, 11th of March 2026 : The Retailers Association of India (RAI) has urged the Ministry of Petroleum and Natural Gas and leading oil marketing companies to ensure uninterrupted supply of commercial LPG cylinders to restaurants and food service establishments across the country.
Recent communications from oil marketing companies, including Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, indicate that LPG supplies are currently being prioritised for domestic consumers due to ongoing geopolitical disruptions affecting global fuel supply.
While the industry fully supports the government’s efforts to safeguard household energy security, the current restrictions have created serious operational challenges for restaurants and commercial kitchens that depend heavily on LPG for cooking operations.
The restaurant and food service sector forms a critical component of India’s urban food ecosystem. Restaurants operate round the clock and provide meals to a wide spectrum of consumers, including hospital staff, students in hostels, industrial workers, office employees, travellers, and millions of customers using food delivery platforms.
A prolonged disruption in LPG supply to the food service sector could lead to:
● Temporary closure of restaurants and commercial kitchens
● Disruption of food supply to hospitals, institutions, and workplaces
● Loss of employment across the hospitality and retail ecosystem
● Operational challenges for small and medium food businesses
RAI has therefore requested the government to consider a minimum assured allocation of commercial LPG cylinders for restaurants and food service establishments, particularly those catering to institutional requirements 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 this 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 has expressed its willingness 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.
The association remains committed to constructive engagement with policymakers to ensure the continued stability and growth of India’s retail and food service sectors.
About the Retailers Association of India (RAI)
The Retailers Association of India is the unified voice of Indian retailers, representing a wide spectrum of retail formats across the country. RAI works closely with indus
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