Iran war impact: LPG supply disruptions hit operations, says Jubilant FoodWorks

Jubilant FoodWorks Ltd (JFL), India’s largest food services company and operator of brands such as Domino’s Pizza and Dunkin’, on Saturday said the supply of LPG cylinders to parts of its store network has been affected due to the ongoing conflict in the Middle East.

Supply constraints, mitigation steps

The company, in a regulatory filing, said it is taking steps to manage the situation and reduce disruptions to operations.

“Operational impact at this stage is limited and being actively managed. The company is taking several steps to conserve LPG and working overtime to move to alternate energy sources like electricity and piped natural gas (PNG),” the listed JFL said in a notification to the BSE on Saturday.

It added that it is closely coordinating with fuel suppliers to stay up to date on the evolving situation.

“The company is in constant engagement with oil marketing companies (OMCs) to remain apprised of the latest developments and plan operational responses accordingly, given the rapidly evolving nature of the situation,” it said in the notification, adding that it continues to closely monitor the situation.

Industry impact, conservation advisory

The disruption comes at a time when the broader restaurant industry is facing pressure due to LPG shortages. Several restaurant chains have reportedly curtailed operations or temporarily shut outlets as cooking gas supplies remain tight.

Earlier this month, the National Restaurant Association of India (NRAI) had advised its members to adopt conservation measures. On March 10, the industry body asked its 500,000 members to consider shorter operating hours, reduce menu items that require long cooking or deep frying, and use lids while cooking to optimise fuel usage.

The LPG supply crunch is linked to the ongoing conflict in the Middle East, which has disrupted key energy supply routes and increased volatility in global fuel markets. Rising geopolitical tensions in the region have impacted the movement of oil and gas shipments, including through critical routes such as the Strait of Hormuz, leading to tighter supplies and logistical delays for fuel-importing countries like India.