Gurgaon Food Sector Reels Under LPG Shortage and Soaring Prices
The bustling food industry in Gurgaon is grappling with a severe crisis as a sharp shortage of LPG cylinders and a dramatic spike in prices are putting immense pressure on cloud kitchens and small eateries. Operators are being forced to make tough decisions, including trimming menus, partially switching to electric appliances, and raising prices to cope with the escalating fuel costs.
Skyrocketing Costs and Black Market Surge
Commercial LPG cylinders, which were available at approximately Rs 2,500 at the onset of the fuel crisis, have now surged to nearly Rs 4,000 in the black market, according to local operators. Many kitchen owners allege that bulk buyers and traders are hoarding cylinders, exacerbating the shortage and compelling smaller businesses to purchase fuel at inflated rates just to keep their operations running.
Kalpesh, who operates a cloud kitchen in the city, highlighted the dire situation. "We are facing significant challenges and have already removed some items from our menu. We might manage for the next few days, but beyond that, it's becoming unsustainable," he said. His kitchen processes around 500 orders daily, consuming between 2.5 and three LPG cylinders on weekdays and up to four on weekends.
Impact on Delivery-First Brands and Employment
A significant portion of the pressure is being felt by delivery-first brands listed on platforms like Zomato and Swiggy, where menus rely on quick-moving dishes and continuous cooking. Several operators have begun quietly removing gas-intensive items, such as tandoor snacks and slow-simmered gravies, from their offerings.
Operators have also warned that prolonged fuel shortages could start affecting employment in the sector. Cloud kitchens typically run multiple shifts with small teams of cooks, helpers, and delivery coordinators. Owners expressed concerns that sustained high fuel costs might force them to cut shifts or reduce staff if operations become unviable.
Kalpesh added, "With cylinders selling close to Rs 4,000 each, sustaining operations becomes extremely difficult. If prices don't come down, we may have to shut the afternoon shift."
Shift to Electric Alternatives and Customer Backlash
In an effort to reduce fuel consumption, some operators have started shifting certain preparations to induction stoves and appliances like air fryers. However, they emphasize that electric alternatives cannot fully replace LPG in a commercial kitchen, especially for bulk curries and tandoor-style dishes.
Rohit Arora, who runs a multi-brand delivery kitchen in Sector 45, shared his frustrations. "We have not been receiving cylinders for the past two days, and market prices keep fluctuating. It's impossible to plan prep or inventory when we don't know if we'll have gas the next morning," he said.
Rising fuel costs are also pushing businesses to pass on some of the burden to customers. Arora noted, "We are being forced to raise prices of combos and biryani meals. Customers are complaining, but we have no other option. If this doesn't stabilize soon, our margins will vanish entirely."
Thin Margins and Operational Threats
Madhu Saini, who operates a cloud kitchen in Sector 57, recently implemented a temporary price increase of Rs 5-20 across most dishes to offset the rising fuel costs. "Many people assume cloud kitchens earn substantial profits, but our margins are wafer-thin—gas price hikes impact us immediately," she explained, adding that some delivery brands might have to pause operations if the situation persists.
Cloud kitchens and small eateries are a crucial component of Gurgaon's food ecosystem, serving hundreds of customers daily and handling large order volumes, particularly on weekends. The district administration has advised consumers facing delays in receiving cooking gas cylinders or refusal of supply by dealers to lodge complaints on the toll-free helpline numbers of the respective LPG companies.
