India may soon see a major shift in how commercial kitchens operate. The Centre is exploring the use of ethanol as an alternative cooking fuel for hotels, restaurants, and large-scale kitchens amid ongoing LPG supply disruptions linked to the West Asia conflict.

Why Is This Move Being Considered?

The proposal comes as India faces a serious LPG supply crunchlargely due to geopolitical tensions affecting shipments through the Strait of Hormuz—a key route for energy imports.

• Around 60–65% of India’s LPG demand is import-dependent


• A large portion of this supply comes from the Middle East


• Ongoing conflict has disrupted logistics and increased prices

This has led to shortages, especially for commercial users like restaurants and hotels.

Ethanol As An Alternative Fuel

The government is now evaluating ethanol as a complementary (not replacement) fuel for commercial cooking.

Key details of the proposal:

• Up to 1,000 crore litres of ethanol could be used


• Focus on commercial kitchens (restaurants, airports, hotels)


• Aim is to reduce dependence on imported LPG

Ethanol, produced domestically from sugarcane and grains, is already widely used in fuel blending—making it a viable next step for cooking applications.

Why Ethanol Makes Sense

Experts highlight several advantages:

• Energy security: Reduces reliance on imports


• Cost efficiency: Potentially cheaper than LPG


• Cleaner fuel: Lower emissions compared to traditional fuels


• Supports farmers: Boosts demand for agricultural produce

Additionally, India already has significant ethanol production capacitywith surplus expected in the coming years.

Impact Of LPG Shortage On Businesses

The LPG crisis has already hit commercial sectors hard:

• Restaurants and eateries facing fuel shortages and rising costs


• Some kitchens forced to cut menus or reduce operations


• Commercial LPG supply being rationed to prioritize households

This has accelerated the search for alternative fuels.

Challenges Ahead

Despite its promise, ethanol-based cooking faces hurdles:

• Need for new infrastructure and distribution systems


• Development of safe and efficient ethanol stoves


• Policy clarity on pricing and supply chain


• Scaling adoption across industries

Officials have emphasized that the idea is still at an early stage of evaluation.

Bigger Picture: India’s Energy Transition

This move reflects a broader shift:

• From import-dependent fuels → domestic alternatives


• From single-source reliance → diversified energy mix

The LPG crisis has exposed vulnerabilities, pushing policymakers to explore long-term, resilient solutions.

Final Take

Ethanol-powered cooking could become a game-changing solution for India’s commercial kitchens. While still in early stages, it signals a strategic pivot toward energy independence, sustainability, and cost efficiency—driven by real-world supply disruptions.

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