Andhra Hotels To Raise Menu Prices By 10% After LPG Price Hike

The Andhra Pradesh Star Hotels Association on Friday said the steep hike in commercial cooking gas cylinder prices has dealt a severe blow to the hospitality industry, leaving restaurants and hotels with no option but to raise menu prices by 10 percent.

On Friday, the Union Government hiked the price of 19-kg commercial cooking gas cylinders by ₹993 to nearly ₹3,315 per cylinder in cities like Hyderabad, owing to rising global energy prices due to the West Asia conflict.

“Effective from May 1st, the price per cylinder has surged by ₹993, delivering a severe blow to the hotel and restaurant industry…Hotel owners are incurring heavy losses due to increased input costs…we have no choice but to increase menu prices by up to 10 percent,” said association president R V Swamy in a press release.

Flagging escalating operational costs, he said commercial gas prices have seen a cumulative rise of nearly ₹1,303 in the last three months.

According to him, not only LPG (liquefied petroleum gas) users, but those using Piped Natural Gas (PNG) are also facing an additional financial burden due to global energy market fluctuations.

As gas is the primary fuel for the hospitality sector, the skyrocketing prices are making daily operations unsustainable.

Apart from fuel costs, Swamy said the industry is grappling with the rising cost of essential commodities, especially edible oils and provisions.

Pointing to the rise in the price of sunflower oil, he said the cost of pulses and vegetables has also reached record highs, further aggravated by expensive packaging materials.

Swamy further said the cost of materials used in takeaway and delivery services has risen steadily.

Appealing to the government for immediate intervention, he urged authorities to provide tax concessions or subsidies to save the hospitality sector.

Also, he asked customers to understand the situation and cooperate as the industry strives to maintain quality standards despite the financial strain.