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The hospitality sector is grappling with a significant rise in operating costs following a recent hike in commercial LPG prices. The price of a 19-kg commercial LPG cylinder has surged by Rs.993, following earlier increases of Rs.195.50 in April and Rs.144 in March, totalling an increase of Rs.1,332.50 over three revisions. This escalation comes as businesses are already contending with supply disruptions, reduced operational capacity, and weakened cash flows.
Hotels and restaurants, major consumers of commercial LPG, are particularly affected, with small and medium establishments, caterers, and large-scale food production businesses bearing the brunt. Many are operating with curtailed hours, limited menus, and alternative cooking arrangements due to inconsistent supply and rising fuel costs. The latest price hike threatens to further strain margins, potentially leading to more temporary closures and job losses.
Pradeep Shetty, spokesperson for the Hotel and Restaurant Association (Western India) and Vice President of the Federation of Hotel and Restaurant Associations of India, expressed grave concerns: “Without immediate relief, the hospitality industry, a key employment generator, faces an existential crisis.”
The impact of rising fuel costs extends beyond individual businesses, affecting employment, food pricing, events, tourism-linked services, and the broader supply chain. A 10 to 15% increase in menu prices is anticipated, but this may not suffice to offset the impact. The industry is urging the government to intervene, roll back the hike, and stabilise LPG prices to provide some relief
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The post Commercial LPG price hike strains hospitality sector appeared first on Travel Daily Media.
