LPG shortage pushes up coal prices in Mumbai

The burden, though, is falling unevenly particularly on small eateries that depend heavily on coal for cooking. A South Mumbai-based kebab seller, requesting anonymity, said his procurement cost has more than doubled in recent days. “What I bought earlier for ₹40–50 per kg is now upwards of ₹100,” he said, adding that menu prices may need to be revised if the trend continues.

A similar strain is visible near Mohammed Ali Road, where Tufel Khan, owner of Zeenat Seekh Kebab Corner, said coal prices have climbed from ₹40 to as high as ₹70–80 per kg. Meanwhile, an Andheri-based restaurateur noted a disparity in pricing, with newer establishments facing higher rates than older businesses that benefit from established supplier relationships.

Large hotel chains and established restaurants remain relatively insulated. Abdul Quddus Choudhary of Choudhary Coal Depot said long-term contracts and tender agreements have shielded bulk buyers from sudden price hikes. “We cannot abruptly increase prices for them,” he said.

The price surge is being driven by a widening demand-supply gap. Traders estimate that demand for coal has tripled in recent weeks, even as supply has tightened due to disruptions linked to the ongoing West Asia crisis. Wholesale procurement prices have risen by ₹10–15 per kg, with current rates hovering around ₹30–35 depending on sourcing.

Coal transported from Tamil Nadu is proving costlier due to freight charges, compared to supplies from Gujarat and Maharashtra. Amirali Charania of Charania Coal Corporation said retail prices have climbed steeply from ₹40–50 earlier to ₹70–100 per kg now even as wholesale rates remain relatively stable for the moment.

But that stability may not last. “Depots may have to increase prices by another ₹10–15 per kg to sustain operations,” Charania warned, cautioning that Mumbai’s coal-reliant food businesses could face a near shutdown within a week if supply conditions do not improve.

The shift back to coal comes despite regulatory pressure to move away from it. Following a Bombay High Court order on January 2025, the Brihanmumbai Municipal Corporation mandated eateries to change to cleaner fuels such as LPG and electricity within six months or risk penalties and licence cancellations.

The Bombay Charcoal Merchants Association has challenged this directive, arguing that charcoal is a permissible, non-polluting fuel under existing norms. The matter remains pending before the court.

In the interim, many restaurants had already reduced coal usage in compliance with civic guidelines, prompting depots to scale back inventory. “Current business is running on existing stock,” Choudhary said.

“If the LPG situation does not improve within a week, supply will tighten further,” he added.