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Restaurants brace as LPG supply tightens — Closures ahead?

Margret Dianne FerminIpinost noong 2026-03-28 08:56:39 Restaurants brace as LPG supply tightens — Closures ahead?

MANDALUYONG CITY — Concerns are mounting among restaurant owners in the Philippines as the country faces dwindling supplies of liquefied petroleum gas (LPG), with inventory levels now down to less than 30 days.

According to the Department of Energy (DOE), the buffer stock of LPG stood at only 24 days as of March 20, raising fears of potential shortages that could disrupt both households and businesses. Price monitoring by the agency showed LPG retail prices ranging from ₱825 to ₱1,067, further straining the food service industry.

Chef Carlo Miguel, Culinary Director of Wildflower Hospitality Group, revealed that their company spends about ₱200,000 monthly on LPG to fuel more than 30 restaurants. “Because I get shipments of produce almost weekly from overseas, I've seen the price increase dramatically. You know what I mean? Some have already seen increases of 30% to 40%,” he said, noting that rising logistics costs and supply chain delays have compounded the problem.

To cope, restaurants have begun implementing energy efficiency measures, such as shutting off deep fryers when not in use. Still, the group has already raised menu prices by about 5% to offset higher operating costs.

Chef Carlo observed a shift in consumer behavior as customers opt for more affordable meals. “Probably the last two weeks, there's been a slight shift away from the high-ticket items, like your steaks and things like that, and more towards the value products, like your chicken,” he explained.

The Department of Agriculture has also warned of possible price hikes in staple foods, including rice, pork, and chicken, with worst-case scenarios showing chicken prices surging by up to 62% from ₱200 to ₱325 per kilo. Pork cuts could rise by as much as 59%, while well-milled rice may increase by 49% starting August.

Restaurant groups fear that if the LPG crisis persists, many establishments could face losses or even closure, especially those still recovering from the economic impact of the COVID-19 pandemic. Chef Carlo appealed to the government to secure additional and alternative sources of LPG supply to prevent further disruption.

This looming energy and food supply challenge underscores the fragile recovery of the restaurant industry, which continues to navigate inflationary pressures and global trade disruptions.