- Restaurants and hotels in western India face menu price hikes due to rising fuel costs and reduced business
- Hospitality costs have surged nearly 20% amid closures, restricted hours, and alternative cooking methods
- Commercial LPG prices increased significantly from April 1, adding pressure on already tight margins
Restaurants and hotels across western India may soon raise menu prices as the hospitality sector grapples with soaring fuel costs and declining business triggered by the ongoing West Asia conflict, with industry body HRAWI warning that operating expenses have surged by nearly 20%, leaving establishments with little room to absorb the impact.
According to HRAWI spokesperson Pradeep Shetty, the sector has been under sustained pressure since the conflict began in late February, with on-and-off closures, restricted operating hours, menu rejigging and a shift to alternative cooking methods all adding to expenses.
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"The latest hike in commercial LPG cylinder prices has added yet another layer of pressure on already squeezed margins. Given this scenario, hospitality establishments may now be left with little choice but to consider an upward revision in menu prices to partially absorb the escalating cost burden," Shetty pointed out.
The latest blow has come from a fresh hike in commercial LPG cylinder prices. State-owned oil companies raised the price of a 19-kg commercial LPG cylinder by ₹195.50 from April 1, taking the Delhi rate to ₹2,078.50 and the Kolkata rate to ₹2,208.
Similar hikes were recorded across metros, Rs 196 in Mumbai and Rs 203 in Chennai. Prices of domestic (14.2 kg) LPG cylinders remain unchanged.
HRAWI has already been pressing authorities for relief. Earlier this month, the association sought an extension of the annual licence-fee deadline and proposed a staggered payment mechanism, arguing that the LPG shortage had severely hit hospitality operations. The wider sector has also been dealing with supply constraints and partial allocations, forcing many establishments to cut operating hours and trim menus just to stay open.
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Industry watchers say the pricing pressure is unlikely to ease soon if energy markets remain volatile.
While larger chains with multiple outlets may be able to absorb some of the impact, smaller restaurants, takeaway outlets, and delivery-based businesses are bearing the brunt.
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