Small eateries struggle as LPG cost soars in black-market
Small eateries, long the backbone of the bustling food streets of the national Capital, are losing their spark. Pushed by dwindling LPG and soaring black-market prices, many are being forced to reshape menus, reduce staff, and return to cooking on coal and wood.
For Neeraj Chawla, who has been running Vaishno Rasoi in Rajouri Garden for the past year after stepping away from a joint family setup, the struggle is both financial and personal.
Shutting shop would make sense, he confides, but it is the fear of “beizatti” (shame) that keeps his stoves — now largely running on coal and wood — alight, even as hope begins to flicker.
“Beizatti nahi ho ke band karke baith gaya hai, isiliye chala raha hoon (I keep it running to avoid the shame of shutting down),” Chawla said, explaining why he continues despite high operational costs and mounting losses.
Amid the West Asia crisis, the Government has revised the priority order for allocating domestically produced natural gas, placing LPG production alongside CNG and piped cooking gas at the top. This has led to an alleged supply crunch for hotels and restaurants, which use market-priced commercial LPG.
With daily sales, which once hovered around Rs 12,000 on a good day, slipping further as coal and wood double cooking time and reduce efficiency, Chawla has already had to lay off two staff members.
From neighbourhood staples like KK Da Dhaba in Tagore Garden, a stone’s throw from Chawla’s eatery, to Khadak Singh Da Dhaba in Malviya Nagar, further across the city, small eateries are facing the same struggle.
Pankaj Dawar at KK Da Dhaba has turned to coal and slashed fried items from the menu.
Disappointment was written large on his face as he said, “No layoffs yet. But LPG prices in the black market are crazy, beyond the reach of most people.”
People familiar with the situation said that a cylinder, typically priced between Rs 1,000 and Rs 1,500, is now being sold for anywhere between Rs 3,000 and Rs 4,500. The situation is more worrisome for Rajinder Singh Bhandari, owner of Khadak Singh Da Dhaba, who hasn’t had LPG for a week.
“No non-veg, only a temporary stove on the tandoor. LPG mil hi nahi raha (can’t find LPG anywhere),” he says, adding that daily sales have fallen from Rs 30,000 to half.
To think that only small eateries are bearing the brunt of the situation would be misleading. Franchise chains and plush cafes alike are in the same boat, scrambling for quick fixes to minimise losses and keep their kitchens afloat.
The sudden LPG shortage has forced restaurants to rethink how they cook, and Secret Ingredient, a consultancy that advises restaurants, has been fielding nonstop calls.
“We’ve been actively working with brands to identify credible induction and electric equipment partners, including solutions that can handle high-intensity formats like woks and bulk cooking.
“Alongside this, we’re helping teams rethink menu design and prep structures to reduce unnecessary gas dependency, whether through smarter batching, sequencing, or reallocating certain processes to an alternative heat source,” said Sid Mathur, founder-director of Secret Ingredient.
