The ongoing concerns around LPG availability and rising gas costs may not just affect household kitchens. They could quietly ripple into India’s fast-growing quick commerce sector as well. Built on speed, convenience and thin margins, the industry depends on a large network of food vendors and cloud kitchens that rely heavily on LPG. If gas becomes costlier or harder to access, the pressure may start building behind the scenes.
Though the impact may not immediately show up on delivery apps, if prices keep rising or supply tightens further, the strain on vendors could slowly reshape menus, pricing and even consumer ordering habits.
THE INVISIBLE ROLE OF GAS IN QUICK COMMERCE
Most consumers associate quick commerce with delivery bikes and mobile apps. But behind the scenes, LPG plays an important role.
Thousands of partner restaurants and cloud kitchens depend on LPG to prepare food ordered through delivery platforms. Many quick commerce apps are now delivering hot meals, ready-to-eat items and bakery products within minutes.
Madhav Kasturia, CEO and Founder of Zippee, believes the real pressure on quick commerce begins here. “For quick commerce, the real damage is upstream. India’s cloud kitchen market, valued at $1.2 billion in 2025 and projected to reach $3.7 billion by 2034 at a 12.28% CAGR, runs almost entirely on LPG,” Kasturia says.
If LPG becomes more expensive or supply tightens, cooking costs rise immediately. Smaller kitchens operating on thin margins may be forced to either increase prices or reduce menu options.
For platforms that rely on high order volumes, even small price increases could begin to affect demand.
CLOUD KITCHENS MAY FEEL THE HEAT FIRST
The biggest impact could fall on cloud kitchens, i.e., the facilities designed exclusively for online delivery.
Unlike large restaurant chains that may negotiate bulk energy contracts or diversify fuel sources, many cloud kitchens rely almost entirely on LPG cylinders. A price spike could push up the cost of preparing each order.
For kitchens already operating on narrow margins, this could translate into higher menu prices on delivery apps or additional service charges. “These kitchens were already margin-thin. A Rs 115 per cylinder hike on top of OMCs (oil marketing companies) already incurring losses of around Rs 39,000 crore in FY25 at below-cost pricing means the actual cost floor is far higher than what’s being passed on today,” Kasturia explains.
Consumers may not immediately connect these changes to LPG prices, but the impact could eventually show up in the final bill.
A CASCADING SQUEEZE ACROSS THE ECOSYSTEM
The effect of rising gas costs could move through the supply chain in layers.
If cooking costs increase, vendors may raise menu prices. That, in turn, could influence consumer behaviour, especially among middle-income households that make up a large share of quick commerce users.
Kasturia warns that the pressure could gradually build across the ecosystem. “Quick commerce platforms face a cascading squeeze: vendor-side margin compression, potential menu repricing, reduced order frequency from cost-conscious middle-income households,” he says.
Platforms that depend heavily on frequent small orders could see demand soften if prices begin to rise.
FERTILISER AND FOOD COSTS ADD ANOTHER LAYER
The gas crunch is not limited to kitchens. Fertiliser plants, which depend heavily on natural gas, are already operating below full capacity. That could eventually affect agricultural input costs and food prices.
Kasturia pointed out that the ripple effects may go beyond delivery kitchens. “With the fertiliser sector now running at around 70% gas capacity, food input costs will follow,” he said.
If ingredient prices rise alongside cooking fuel costs, food vendors could face a double squeeze, i.e., higher energy costs and more expensive raw materials.
THE RISK FOR QUICK COMMERCE PLATFORMS
Quick commerce companies have built their business models around speed and affordability. But the sector has always operated on tight economics.
If vendors struggle with rising costs, platforms may need to step in, either by renegotiating vendor contracts or adjusting pricing structures.
Meanwhile, some companies are already exploring alternatives such as induction cooking in dark stores or hybrid kitchen models to reduce dependence on LPG.
Kasturia believes companies that delay such adjustments could face greater challenges later. “The platforms that are not renegotiating vendor terms or diversifying to induction-based dark stores right now are building risk,” he said.
CONVENIENCE VERSUS COST
For consumers, the first signs of change may appear in subtle ways, slightly higher menu prices or fewer discounts on delivery apps. Over time, it could also influence ordering patterns.
Quick commerce has expanded rapidly by offering speed and convenience. But if fuel and food costs continue to climb, the industry may have to rethink parts of its model.
For now, the gas crunch has not disrupted quick deliveries. But industry observers say the pressure building in kitchens today could eventually shape the prices consumers see on their screens tomorrow.
