Swiggy, Eternal shares drop 2% each amid shortage of commercial LPG cylinders; here's why

Shares of online food delivery platforms Swiggy Ltd and Eternal Ltd fell 2 per cent each in Tuesday's trade amid concerns shortage of commercial LPG cylinders may hit restaurants and hurt their food delivery segments. On Tuesday, Swiggy fell 2.45 per cent to hit a low of Rs 294. Eternal was down 1.98 per cent at Rs 225. 

The shortage of commercial LPG cylinders has raised concerns within the hospitality industry, with restaurant associations in Maharashtra, Karnataka  and Tamil Nadu cautioning that many eateries may be forced to suspend operations if supplies are not normalised soon.

Vijay Shetty, President of the India Hotels and Restaurant Association, told Business Today that nearly 20–30 per cent of restaurants in Mumbai have already shut operations, and up to 60–70 per cent may be forced to close within the next two days if LPG supplies are not restored. 

Hotels and restaurants typically rely on 19-kg commercial LPG cylinders, consuming two to three cylinders daily, with most establishments maintaining only a two-to-three-day buffer stock. 

Shetty said supplies have been severely disrupted since Thursday, leaving many establishments without fuel to continue cooking operations. The worst-affected areas, he noted, included South Mumbai and suburban stretches from Andheri to Dahisar. Switching to alternative fuel sources such as electric or induction cooking is not immediately feasible due to equipment constraints, Shetty told Business Today.

The situation has now become even more critical. Commercial LPG distributors have completely stopped supplying cylinders, stating that they have no stock available. As a result, many restaurants are forced to shut dow 

Quoting industry sources, India Today earlier reported that the disruption had already begun affecting operations in Bengaluru, as hotels and restaurants struggle to secure cooking gas amid global supply disruptions. Supply concerns intensified after deliveries from Qatar Energy were disrupted following an attack on its Ras Laffan liquefaction complex on March 2.

Petronet LNG received a notice of Force Majeure from the LNG supplier and in return the company issued corresponding Force Majeure notices to its off-takers, namely GAIL (India), Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Ltd (BPCL), under the relevant Gas sale and purchase agreements.