A commercial LPG shortage has forced the Indian Railway Catering and Tourism Corporation (IRCTC) to resume onboard cooking using induction stoves, impacting meal preparation on 1,400 trains. This change affects approximately 1.7 million meals served daily, according to Business-Today.
Middle East Conflict and LPG Shortage
The LPG shortage stems from disruptions in energy supplies through the Strait of Hormuz following the US-Israel conflict with Iran, which began on February 28. This critical route for oil and gas exports from West Asia has been significantly affected, leading to a sharp decline in LPG availability.
Impact on Indian Railways
The shortage has led to the resumption of onboard meal preparation in Linke Hofmann Busch (LHB) pantry cars using electric induction stoves. IRCTC has also installed induction cooking facilities at major railway stations to maintain catering services. Premium services like Rajdhani, Shatabdi, Duronto, and Vande Bharat trains, which operate with LHB coaches, are particularly affected.
- 1,400 trains affected
- 1.7 million meals served daily
- 60% of food preparation shifted to electricity-based cooking
Financial and Operational Implications
The LPG shortage has impacted IRCTC's financial performance, with a reported earnings-before-interest-and-taxes margin of 6.3% in Q4 2025-26, down from 10.4% the previous year. Rising input costs and the need for higher tariffs or increased volumes to protect margins are significant challenges.
"The last revision in catering prices took place in 2019. With cooking gas becoming more expensive, IRCTC will need either higher tariffs or continued growth in volumes to protect margins," a Mumbai-based analyst noted.
Watch List
- Coordination with Oil Companies: IRCTC is working with Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL) to ensure priority LPG supply.
- Infrastructure Gaps: Parliamentary data indicates that 341 trains still operate without pantry service facilities, highlighting gaps in railway catering infrastructure.
The ongoing LPG shortage and the shift to induction cooking present operational challenges for IRCTC and highlight the need for infrastructure improvements and strategic planning to mitigate future disruptions.
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