Hotel body says LPG price hike could force review of menu rates

Rising LPG cylinder prices raise concerns in the hospitality sector, potentially leading to higher food costs, as hotels face increased ingredient prices.

The increase in LPG cylinder prices has raised concerns in the hospitality sector, with hotel associations warning that rising fuel and ingredient costs could lead to higher food prices in the coming weeks.

Hotel body says LPG price hike could force review of menu rates

The price of domestic LPG cylinders increased by about ₹60, while 19-kg commercial cylinders used by hotels became costlier by ₹114.5 from March 7. The hike comes amid rising global energy costs linked to tensions in West Asia and marks the second price increase in less than a year.

PC Rao, president of the Bengaluru Bruhat Hotels Association, said the impact on restaurants and hotels has been compounded by the withdrawal of an earlier discount on commercial cylinders.

“Hoteliers earlier received a discount of around ₹150 on the maximum retail price (MRP) of commercial LPG cylinders. That was stopped from March 1, and now the MRP has increased. So the total impact on us is around ₹265 per cylinder,” he said.

Rao said the increase comes at a time when hotels are already facing rising costs for several key food preparation ingredients. According to him, cooking oil prices have increased by about ₹15 to ₹20 per kilogram. Coffee bean prices have also risen, while dry fruits, particularly cashews widely used in gravies and sweets, have seen a price increase of nearly 20% to 25%.

Industry representatives said the combined rise in fuel and ingredient costs could eventually force hotels in Bengaluru to review menu prices.

Reacting to the LPG price increase, Karnataka chief minister Siddaramaiah criticised the Union government, saying the decision would add further pressure on households already grappling with inflation.

“The latest increase in LPG cylinder prices is deeply concerning for millions of households across India. At a time when families are already battling relentless inflation, yet another burden is being placed on the kitchens of ordinary citizens. Domestic cylinders have increased by around ₹60, adding further pressure on household budgets,” he said.

Siddaramaiah said the increase was linked to the Union government’s foreign policy decisions, arguing that India had compromised its strategic autonomy by aligning closely with the United States and weakening long-standing energy partnerships with countries such as Russia and Iran. “This crisis is not accidental but the result of a foreign policy that mistakes submission for strategy,” he said.

Quoting India’s first prime minister, he added: “Pandit Jawaharlal Nehru had warned with remarkable clarity: ‘Foreign policy is the outcome of economic policy.’ When diplomacy becomes spectacle rather than strategy, its consequences inevitably reach the kitchens of the poor and the middle class.”