Eternal and Swiggy Shares Fall Over 4% as Commercial LPG Shortage Disrupts Restaurant Operations
Shares of food delivery and quick commerce operators Eternal Ltd. and Swiggy Ltd. declined sharply on Thursday, March 12, after a shortage of commercial LPG disrupted restaurant operations across India.The supply disruption has affected food preparation across several outlets, leading to reduced menu offerings and temporary closures in many locations. The development has directly impacted order volumes on food delivery platforms.
LPG Supply Disruption Linked to West Asia Conflict
The shortage follows escalating tensions between the United States and Iran in West Asia, which have affected global gas supplies. Qatar Energy, one of the world’s largest gas producers, has declared Force Majeure, disrupting supply commitments to downstream clients.The declaration has triggered a cascading impact across the supply chain, contributing to the shortage of commercial LPG used by restaurants and food businesses.
As a result, many restaurants across the country have either scaled back their menus or temporarily shut operations until LPG availability stabilizes.
Government Moves to Protect Domestic LPG Supply
Authorities are taking steps to ensure that domestic household gas supplies remain unaffected despite the ongoing disruptions in commercial LPG availability.The focus remains on maintaining adequate supply for households while addressing the shortages impacting businesses.
Gig Workers Raise Concerns Over Order Disruptions
The Gig Workers Association has raised concerns about the impact of the LPG shortage on delivery workers.According to the association, around 50% to 60% of orders on food delivery platforms have been affected due to reduced restaurant operations.
The Gig and Platform Services Workers Union has called on Eternal and Swiggy to provide financial support to affected workers. The union has demanded a relief payment of ₹10,000 per worker, along with a three month moratorium on account deactivation and the introduction of minimum daily incentives.
In a statement, the union said the crisis could affect nearly one crore workers, a significant number of whom are engaged in gig and platform based jobs.
Stocks Under Pressure
Amid the operational disruptions, shares of Eternal Ltd. were trading 4.4% lower at ₹214. Swiggy Ltd. shares also declined by a similar margin to ₹272.Swiggy’s stock continues to trade significantly below its IPO price of ₹390, while Eternal remains well below its recent 52 week high of ₹367.
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