Motilal Oswal
Impact of LPG Shortages on Food Delivery Operations
Pages
6
Time to read
21 mins
Publication
Language
English
Pages
6
Time to read
21 mins
Publication
Language
English
This research report discusses the impact of commercial LPG shortages on restaurants and food delivery platforms in India. It outlines the current situation where LPG cylinder supplies have tightened due to disruptions in supply from the Strait of Hormuz, leading to delays in deliveries for restaurants. The report addresses key questions regarding commercial LPG usage in India, the exposure of LPG imports to the Strait of Hormuz, and the implications for food delivery operations. It details that approximately 28-30 million metric tons of LPG are consumed annually in India, with a significant portion of demand met through imports. The report further explains that restaurants typically maintain limited inventory buffers, which can lead to operational impacts within a short timeframe during supply disruptions. The report concludes by noting that if the LPG shortage persists, it could result in a temporary decline in food delivery order volumes.