LPG Shortage Crisis: Why Auto Rides May Get Costlier And Breweries Are Feeling The Heat

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A sudden spike in auto LPG prices at a private fuel station in Coimbatore and an emerging shortage of cooking gas in Bengaluru’s hospitality sector are highlighting the wider ripple effects of the ongoing West Asia crisis on India’s energy ecosystem.

Drivers, brewers, restaurant owners and small businesses are beginning to feel the strain as supply uncertainties linked to the geopolitical conflict in West Asia disrupt energy flows and fuel availability across parts of the country.

While India has so far managed to shield consumers from immediate petrol and diesel price increases despite crude oil prices crossing the $100 per barrel mark globally, other segments dependent on LPG are starting to experience disruptions.

Auto Drivers Protest Sudden LPG Price Hike

Auto and taxi drivers staged a protest on Tuesday after a private gas station at KNG Pudur near Thadagam reportedly increased the price of auto LPG overnight, reported TOI.

According to drivers who rely on the station for daily refuelling, the price of auto LPG was raised to Rs 84.99 per litre, compared with around Rs 64.87 per litre at other outlets in the city.

The hike triggered immediate protests as drivers questioned the sudden increase when they arrived to refuel their vehicles.

Drivers alleged that when they raised concerns about the steep price jump, the station management told them to refuel only if they were willing to pay the revised rate.

Suresh Kumar, a taxi driver who joined the protest, said the situation was particularly difficult because the fuel station is the only outlet in and around the KNG Pudur area.

According to Kumar, drivers felt the management was taking advantage of the broader LPG supply uncertainty triggered by geopolitical developments.

“Our livelihood will be affected by this,” he said, adding that drivers already operate on thin margins.

Auto drivers said a Rs 20 per litre increase in fuel prices could significantly erode their daily earnings.

“We cannot afford this hike, and we cannot increase our fares,” one of the drivers participating in the protest said.

Drivers estimated that the price increase could translate into daily losses of Rs 300 to Rs 500, depending on the number of trips completed.

The protesters urged the state government to intervene and regulate private LPG pricing to prevent sudden hikes during the ongoing energy uncertainty.

Brewing Industry Feels The Heat

The impact of LPG supply disruptions is also being felt in Bengaluru’s hospitality sector, particularly among craft breweries that depend heavily on cooking gas to operate boilers used during the brewing process.

Bengaluru is home to more than 80 microbreweries, many of which rely on LPG-powered systems to generate steam required to process malt and brew beer.

Industry representatives say that if gas supplies remain disrupted, production levels may need to be reduced.

Mukesh Tolani, co-founder of Toit Brewpub, said the brewery currently has LPG stock that could last only until the weekend.

“To avoid disruption in production, we are speaking to our vendor to see if we can shift from LPG to diesel,” Tolani said.

He added that the brewery has also begun installing electric grillers and induction plates in an effort to optimise LPG consumption.

Supply Limits Create Operational Challenges

Brewery operators say the brewing process relies heavily on LPG-powered boilers that generate the heat and steam necessary to process malt.

Prasanna Kumar, co-founder of Bengaluru Brewing Company, warned that existing beer stocks could last only around 15 days if gas supplies do not improve.

“Gas is the primary fuel for running the boiler during the brewing process,” Kumar explained.

He added that switching to alternatives such as electric or firewood boilers is not straightforward. “Switching on short notice is expensive and time-consuming. It can also affect the purity and flavour of the beer,” he said.

Restaurant operators say the shortage is also forcing changes to kitchen operations.

Nirmal PV, co-founder of Mannheim Craft Brewery, said the establishment has begun revising its menu to focus on dishes that require less heat.

“Some cuisines such as Asian, Chinese and Italian require high heat. We are shifting towards simpler cooking methods,” he said.

Wider Energy Market Pressures

The emerging disruptions come as global energy markets remain volatile due to the ongoing conflict in West Asia.

Geopolitical tensions in the region have already pushed global crude oil prices above $100 per barrel, raising concerns about supply chains and energy availability.

Although petrol and diesel prices in India have so far remained stable as oil marketing companies absorb part of the shock, the situation highlights how supply constraints can begin to affect specific sectors such as LPG-dependent transport and hospitality.

For small businesses and independent drivers, the coming weeks may prove critical if supply conditions fail to stabilise.