Jubilant FoodWorks says stores impacted by LPG supply shortage amid West Asia war: What we know
Restaurant franchisee Jubilant FoodWorks told stock exchanges today that the war in West Asia and the resulting impact on liquefied petroleum gas (LPG) cylinders has restricted supply to certain parts of its store network.
Jubilant operates fast food chains such as Domino’s Pizza and Dunkin Donuts.
The company also said it has taken steps to save LPG and is working overtime to switch to alternative energy sources such as electricity and piped natural gas (PNG).
Impact of the war: What did Jubilant FoodWorks say?
In the statement dated March 28, it was stated that “Due to the ongoing geopolitical situation in the Middle East, there are supply restrictions in the distribution of commercial LPG throughout the country and therefore the supply of LPG cylinders to certain parts of the company’s store network is restricted.”
“The operational impact at this stage is limited and is being actively managed. The company is taking various steps to preserve LPG and is working overtime to switch to alternative energy sources such as electricity and piped natural gas (PNG),” he added.
Additionally, JFL added that “given the rapidly evolving nature of the situation, it is constantly engaging with oil marketing companies (OMCs) to stay abreast of the latest developments and plan operational responses accordingly.”
Jubilant also sought to reassure that the company “has resilient systems and processes in place to address short-term operational challenges and will continue to monitor the situation closely.”
LPG crisis worsens as war continues
As the US-Israel-Iran conflict drags on, concerns have grown about disruptions to oil and gas supplies in the strategic Strait of Hormuz, which Tehran has blocked in retaliation. Also on Friday, Russia announced that it is banning gasoline exports starting April 1 in order to prioritize domestic supplies and stabilize domestic fuel prices amid global market turbulence due to ongoing conflicts in the Middle East, which are about to enter their fifth week.
Meanwhile, India has been struggling with LPG shortage for the last few weeks due to the war. The center said on Wednesday that supply “continues to be impacted due to the current geopolitical situation” but no disruptions have been reported and cylinder deliveries are continuing as normal.
The government is also pushing households and commercial users to switch to PNG, which is both domestically produced and considered a more affordable alternative through diversified supply.
In another major move, the central government on Friday also increased commercial LPG allocation to states by 20%, raising the quota to 70% of pre-war levels to meet industrial needs, including steel and automobiles.
Disclaimer: HT Media Ltd, which publishes Mint, and the backers of Jubilant Foodworks are closely related. However, neither promoter has cross-holdings.
