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LPG price surge forces Pune restaurants to add extra charges

Pune’s restaurants, street food vendors and mess operators have either increased menu rates or introduced separate ‘gas surcharges’ to stay afloat following sharp rise in commercial LPG prices

Published on: Mar 24, 2026, 04:04:00 IST
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Pune: Pune’s food business is feeling the heat of a sharp rise in commercial LPG prices and erratic supply, forcing restaurants, street food vendors and mess operators to either increase menu rates or introduce separate “gas surcharges” to stay afloat.

Pune’s restaurants, street food vendors and mess operators have either increased menu rates or introduced separate ‘gas surcharges’ to stay afloat following sharp rise in commercial LPG prices. (HT)
Pune’s restaurants, street food vendors and mess operators have either increased menu rates or introduced separate ‘gas surcharges’ to stay afloat following sharp rise in commercial LPG prices. (HT)

Over the past few weeks, the cost of commercial LPG cylinders has reportedly shot up steeply, while availability has remained inconsistent. The twin pressures have disrupted daily operations, especially for small eateries that operate on thin margins. Many have responded by hiking prices of staple items, directly impacting students and working professionals who depend on budget meals.

A South Indian restaurant owner in the city said he has increased the price of every item on his menu by 10 to offset rising fuel costs. “We had no choice. Fuel is a major expense, and with these rates, it is becoming difficult to sustain,” he said.

The issue came into sharp focus last week after a customer at Green Sampan Restaurant in Wanowrie found a 100 “gas surcharge” added to his bill, triggering a debate on billing practices. Responding to the controversy, restaurant manager Ansari said the charge was applied only after informing the customer.

“The customer was told about the additional charge, and only after his confirmation was it included in the bill. We have not charged anything beyond that. In fact, we are currently out of LPG stock and may not be able to operate from tomorrow,” he said on Monday.

In another instance, Spring Onion Restaurant on Bhandarkar Road in Deccan Gymkhana reportedly levied a 30% surcharge on the total bill, citing a steep increase in LPG cylinder prices—from around 2,000 earlier to nearly 7,000 now per cylinder. The surcharge was communicated through a notice at the outlet, but the move has sparked a wider discussion on whether such costs should be built into menu prices rather than added separately.

Ganesh Shetty, president, Pune Restaurants and Hoteliers Association (PRAHA), said the industry is under severe strain. “Restaurant owners are taking decisions based on their individual situations. The entire sector is facing pressure due to rising LPG costs and supply issues. Everyone is trying to find ways to sustain operations during this challenging period,” he said.

The impact is equally visible among smaller establishments. Swati’s Pav Bhaji, a popular outlet on Sinhagad Road in Vadgaon Budruk, has increased the price of its pav bhaji from 120 to 140 and pulao from 150 to 170, attributing the 20 hike to rising gas costs.

Owner Swati Mujumle said, “The cost of commercial LPG cylinders has increased sharply, and supply has become irregular. It is very difficult for small restaurants like ours to operate smoothly. We have tried to keep prices affordable, but it is no longer possible to continue at earlier rates. Even this 20 increase is minimal compared to the actual burden.”

Customers, meanwhile, remain divided. Some have raised concerns over transparency and unexpected charges. “If restaurants are facing genuine cost increases, they should include it in the menu price instead of adding it later. It feels misleading when extra charges appear on the bill,” said Aditya Karnik, a college student.

Others, however, are more understanding. “Prices of everything have gone up. If a small surcharge helps restaurants survive, I don’t mind paying a little extra, but it should be clearly informed beforehand,” said Mandar Nalawade, a working professional.

With no immediate relief in LPG prices or supply, the city’s food industry is likely to continue passing on at least part of the burden to consumers—raising questions about pricing transparency and affordability in the weeks ahead.