Dining out in Bengaluru is set to become more expensive after a steep hike in commercial LPG prices. The Union Ministry of Petroleum and Natural Gas has
increased the price of a 19 kg commercial cylinder by Rs 993, taking the new rate to Rs 3,153 in the city. This sharp rise is expected to directly impact restaurants, hotels, canteens and small eateries, many of which are already struggling with rising operational costs. Hotel and restaurant associations have warned that a price hike is unavoidable. Terming the increase a major blow, P C Rao, president of the Bengaluru Hoteliers' Association, said, "As soon as the elections were over, the govt gave us a big blow. It may seem commercial cylinder prices do not impact the common man directly, but it will certainly have a cascading effect. This move will also affect hostels, PGs and canteens. Increasing prices of food items is not our intention, but it is unavoidable."
Industry estimates suggest that menu prices could go up by around 10 per cent in the coming days. Notably, commercial LPG prices have been increased three times in the last 60 days, with the total hike now touching Rs 1,388.
According to the National Restaurant Association of India, LPG currently makes up about 10 percent of food costs in restaurants, which could rise further.
"Quite a bummer to be honest. Prices went up by 10% about a month ago. Now, another 50% more. So that's technically a 60% jump from the base in March. Such high inflation on fuel costs will lead to an increase in food cost and restaurants will be pushed to pass this on to the end consumers." Sagar Daryani, President, National Restaurant Association of India, told TOI.
Rising Costs Push Restaurants To Explore Alternatives
With fuel costs rising, restaurants are now exploring alternative cooking methods, though options remain limited.
"LPG currently accounts for about 4-5% of our overall operating costs, which could rise to 6-7%. Despite the increase, Rameshwaram Cafe does not plan to raise menu prices immediately. We are evaluating a gradual shift towards induction-based cooking systems," Raghavendra Rao, co-founder of Rameshwaram Cafe told TOI.
However, experts, as per a report by TOI, say shifting to alternatives like electricity or solar power is not easy due to high tariffs and infrastructure challenges. Many establishments operate from rented spaces, making long-term investments difficult.
With around 30,000 hotels in Bengaluru alone, the hike is expected to hit small eateries the hardest. Industry bodies are now urging the government to reduce GST on commercial LPG from 18 percent to 5 percent to provide some relief.
