LPG supply disruption pushes packaged food firms to consider electric heating and biofuels

Packaged food makers and large caterers are shifting plans for kitchen fuel as commercial LPG supplies tighten. The changes follow tensions linked to the war in West Asia. Companies said they are assessing electric cooking, biofuels, and other options. Some firms also said they are speaking with government bodies to manage near-term supply risks.

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Balaji Wafers said it faced a direct impact in Gujarat. Founder and Managing Director Chandu Virani confirmed a notice for reduced allocation this month. The notice was for only half the usual supply. The disruption followed the US-Israel strike on Iran, which affected gas availability, Virani said.

LPG supply disruption pushes packaged food firms to alternative fuels

Virani said Balaji Wafers was weighing a switch to different fuel options. "We are considering changing the fuel and using the liquid option. We will take a decision in the next two-three days,\" Virani told. The company also flagged higher packaging expenses linked to costlier plastic.

Virani said plastic prices rose by nearly Rs 100 per kg. Virani added the pressure could affect output and employment. Virani also said the impact could spread to farmers supplying raw materials. Other stakeholders connected to production could also feel the strain, Virani said.

Gopal Snacks said it already used bio coal at its Modasa and Nagpur facilities. The company said its manufacturing units were operating smoothly. Gopal Snacks said it expected to meet customer demand without disruption. The company linked its planning to wider uncertainty in commercial LPG availability.

The company also referred to a recent government notification. It said the notification restricted gas use for commercial purposes. It also prioritised LPG for domestic use due to West Asia tensions. In a regulatory filing, Gopal Snacks said it aimed to reduce reliance on one fuel source.

LPG availability prompts Compass India to adjust central kitchen operations

Compass India Group said it was tracking commercial LPG availability in select markets. The firm is part of Compass Group PLC, a British contract food service provider. It said it was working to keep food services running across sectors. These included healthcare, education, manufacturing, GCCs, and corporate workplaces.

\"Our priority is to ensure uninterrupted food services across the sectors we service, including healthcare, education, manufacturing, GCCs, and corporate workplaces. We need to ensure continuity in operations so that in the overall outlook, people are taken care of, education continues to happen, and work continues to progress,\" said Compass Group India Chief Culinary Officer Chef Arjyo Banerjee.

Banerjee said the company was expanding other cooking approaches. \"Operationally, it is exploring alternate cooking methods, including increased usage of electrical equipment and bio-based fuels, to power steam systems in our central kitchens,\" he said. Compass Group also deployed extra electrical equipment at some sites, he added.

\"Wherever necessary, we are carefully preparing business continuity menus to optimise gas usage by limiting items that require prolonged cooking or higher fuel consumption, while ensuring meals remain safe, nutritious and balanced,\" he said. Compass India said it also created a central dashboard to track affected cities.

The company said the dashboard helped it respond to specific sites. It also rolled out an operational guide for culinary teams. The guide covered menu planning and fuel use. It also aimed to improve preparedness at the site level during supply disruptions.

LPG search trend rises as supply concerns grow, Justdial data shows

Justdial said it saw a jump in online searches tied to LPG and cooking gas services. It linked the trend to discussions about supply availability. Comparing February 28 – March 5, 2026, with March 6 – March 11, 2026, it said LPG searches rose 3.5 times across India.

Among major metros, Justdial said Delhi showed the biggest rise. Searches in Delhi climbed nearly six times, it said. Mumbai searches rose four times in the same comparison period. Bengaluru and Chennai recorded close to a three-fold increase, Justdial said, as households and businesses tracked availability.

With inputs from PTI