Rising commercial cylinder prices and supply delays are putting eateries, hostels, and caterers under financial strain, with consumers likely to feel the impact if the crisis continues.
A shortage of commercial LPG cylinders in parts of Hyderabad is placing the city’s food service industry under pressure, with restaurants, hostels, and catering businesses struggling to manage rising costs and irregular supplies.
Bulk buying of LPG cylinders has been reported across several areas, leading to supply shortages in the market. Traders say commercial cylinders, which usually sell for ₹1,080-₹1,500, are now being traded for as much as ₹2,110.50 in some places, reflecting growing demand and limited availability.
According to suppliers, the shortage has coincided with a steep rise in prices over the past few months. A 19 kg commercial LPG cylinder that cost around ₹1,114 last year has now climbed to nearly ₹1,965.50, significantly increasing operational costs for restaurants and food businesses that rely heavily on LPG for cooking.
“Earlier, we used to receive three truckloads of refilled cylinders with around a thousand units daily. Now we get only two truckloads once every two days,” said Sai Prasad, a supplier from Tirumala Enterprises in Begumpet. He added that demand has risen sharply during the Ramzan season, further straining supply.
The shortage has disrupted kitchen operations across the city. Hoteliers in the IT corridor say refilling delays are becoming frequent, even for those who have placed advance bookings.
In response, the IT Corridor Hostels Association has advised hostels in the area to temporarily reduce menu items that consume more LPG, including dosas, chapatis, rotis, and idlis. “This situation will push many hostels into financial difficulty,” representatives from the association said.
Distributors attribute the shortage partly to logistical disruptions affecting global LPG shipments. Jagan Mohan Reddy, president of the Distributors Association, noted that shipping delays and supply bottlenecks have slowed deliveries. “The news of the shortage has also triggered panic buying in the market, which is further tightening supply,” he said.
Caterers handling weddings and large gatherings say the spike in LPG prices is eating into their profits. “Earlier, a cylinder cost around ₹2,110.50. Now it is going up to nearly ₹3,500 in some cases. The gas price hike is affecting every hotelier,” said Khan, owner of Madinah Hotels.
Event caterers say they cannot easily revise prices for bookings already confirmed months earlier. “The LPG consumption is high during large events, but we still have to provide the service at the same price even if it results in a loss,” said Yesu Shadrach of Shadrach Catering.
Consumer Impact
Industry representatives warn that if the shortage continues, consumers may soon feel the effects. Restaurants could be forced to increase food prices, limit menu options, or reduce service hours to manage rising operational costs. Some establishments have already begun cutting down on LPG-intensive dishes, which could gradually affect the variety of food available to customers across the city.
Possible Solutions and Government Response
Distributors say they are working with gas agencies to improve supply and reduce delays in refilling cylinders. Industry bodies have also urged authorities to prioritise commercial LPG distribution to ensure that food establishments do not face prolonged disruptions.
Officials say the situation is being monitored and that steps are being taken to streamline distribution and stabilise supply chains. Stakeholders remain hopeful that improved logistics and increased supply in the coming weeks will ease the pressure on the city’s hospitality sector.
With demand rising during the festive season and supply yet to stabilise, Hyderabad’s food industry is bracing for continued challenges if the LPG shortage persists.
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