Commercial LPG price hike to strain hospitality sector margins
Menu prices likely to rise 10 to 15 per cent
Industry warns of closures and rising job losses
Commercial LPG Hike To Aggravate Job Losses; Drive Up Hotel, Restaurant Menu Prices: Industry
Sharp Rs 993 hike in commercial LPG prices may force hotels and restaurants to raise menu prices by up to 15 per cent, while worsening job losses and closures, industry warns
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The latest hike in the price of 19-kg commercial LPG cylinders used by hotels and restaurants has dealt a "severe blow" to the hospitality industry already reeling under the impact of closures and job losses, and will aggravate the situation, industry associations said on Friday.
They urged the government to intervene and roll back the hike.
The prices of commercial LPG - the one used in hotels and restaurants - have been hiked by Rs 993 to a record high of Rs 3,071.50 per 19-kg cylinder.
Pradeep Shetty, Spokesperson, Hotel And Restaurant Association (Western India) - HRAWI & Vice President, FHRAI (Federation of Hotels and Restaurants Association of India), said, "Due to the recent rise in LPG prices, a 10 to 15 per cent hike in menu prices is imminent. But even that may not be enough to absorb the impact. We urge the government to urgently intervene, roll back this hike and stabilise LPG prices to give the sector some breathing space. Without immediate relief, the hospitality industry, a key employment generator, faces an existential crisis".
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According to Shetty, the latest increase of Rs 993 per 19-kg commercial LPG cylinder, coming immediately after hikes of Rs 195.50 in April and Rs 144 in March, has dealt a severe blow to the hospitality industry.
"With commercial LPG prices now having risen by a staggering Rs 1,332.50 within just three revisions, the sector is facing an unprecedented escalation in operating costs at a time when businesses are already struggling with supply disruptions, reduced operational capacity and weakened cash flows," Shetty said.
He highlighted that many establishments are already operating with curtailed hours, limited menus and alternative cooking arrangements due to inconsistent supply and rising fuel costs. This latest revision will further strain margins and make operations increasingly unsustainable.
Shetty observed that many establishments have already shut down temporarily; this latest hike will accelerate closures and job losses.
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