Restaurant Fuel Shortage May Hit Swiggy, Zomato Orders

Food delivery platforms Swiggy and Zomato could face some pressure on order growth as restaurants deal with a shortage of commercial liquefied petroleum gas (LPG) cylinders.

A number of restaurants have started cutting down the number of dishes on their menus, and a few have halted operations for the time being as fuel availability remains in short supply.

Market participants are already being careful in their response. The Swiggy and Zomato (Eternal) share prices fell about 1.1% on 12 March 2026.

What Is Causing The LPG Supply Disruption?

The shortage has been linked to the problems with fuel shipments through the Strait of Hormuz, which is not only one of the main global energy transit routes but also very significant.

Approximately 80% to 85% of natural gas imports enter through this passage, thereby making it extremely vulnerable to any changes in politics and interruptions of supply.

Out of the 60% import of LPG in India, usage for commercial purposes is about 4%, and this type of usage is vital for restaurants, hotels, and catering businesses that have to be supplied with cooking fuel every day.

How Are Restaurants Managing The Shortage?

Restaurants generally operate with limited storage capacity for LPG cylinders. As a result, most establishments keep only 2 to 6 days of cylinder inventory.

Typical daily consumption varies based on the size of the kitchen:

• Small restaurants usually consume 1 to 2 commercial cylinders (19 kg) per day.

• Mid-sized restaurants require 3 to 5 cylinders daily.

• Large hotel kitchens may use 6 to 10 cylinders every day.

Because of these limited reserves, supply interruptions can begin affecting restaurant operations within 48 to 72 hours.

What Steps Has The Government Taken?

Officials in the petroleum ministry acknowledged that they have received requests from industry representatives seeking additional commercial LPG supply.

Sujata Sharma, Joint Secretary in the Department of Marketing and Oil Refinery, said the government reviewed the situation after receiving these representations.

Following the review, authorities decided that some commercial LPG cylinders would be released to address the shortage.

At the same time, officials emphasised that household LPG demand will remain the priority, particularly amid rising concerns among residential consumers.

Also read: Amazon Starts 90-Day Reset To Stop Constant Tech Outages

What Can Be Expected Next?

Over the next few weeks, much will depend on how quickly the supply of commercial LPG stabilises. As availability improves, restaurants can start displaying their full menus again, and deliveries can gradually return to normal levels.

However, if the shortage continues, eateries may cut operating hours or limit the range of dishes they offer.

Such a move may temporarily hold back the expansion of orders for food delivery services like Swiggy and Zomato, especially in the cities where there are many restaurant partners.

Sources:

The Hindu

Financialexpress