Thursday, March 12


Hyderabad: The ongoing shortage of commercial LPG cylinders has led to a thriving black market in the city. While the official price of a 19-kg commercial LPG cylinder is around 2,100, several eateries and hostel kitchens said they were forced to buy them on the black market for 3,000 to 4,000 per cylinder.Industry estimates suggest the city requires around 20,000 commercial LPG cylinders every day to meet the needs of hotels, restaurants, hostels and food establishments. While some large hotels managed to stock up on cylinders sufficient for about a week, smaller eateries and hostel kitchens said they struggled to secure supplies.Restaurant owners said the shortage created a situation where many establishments were left with little choice but to depend on unofficial channels to keep their kitchens running.Burning hole in pockets“We require around 200 cylinders per month for my two hotels. If we buy cylinders for 4,000 or more on the black market, it becomes very difficult to sustain operations, as it puts an additional burden of 4 lakh a month. We cannot increase food prices immediately because customers will stop coming. But without gas, we cannot run the kitchen either,” said Sandeep Balasubramanian, the Hyderabad Chapter head of National Restaurants Association of India.Small eateries, roadside tiffin centres and hostel kitchens, which operate on thin margins and depend on regular LPG supplies for daily cooking, are the worst affected. Many said the sharp increase in cylinder prices on the black market ate into their profits.“We fear that if the shortage continues for a longer period, it could lead to higher food prices in hotels and mess facilities, as establishments may eventually be forced to pass on the increased cost of LPG to customers,” said V Srinivas, a tiffin centre operator in Ameerpet.



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