Commercial LPG price surge may burn hole in diners’ pockets

Pune: Restaurant owners are considering an increase in the price of food as commercial LPG cylinder rates have nearly doubled over the last three months, sharply hiking kitchen operating costs.

The owner of a Chinese restaurant said, “We use at least two 19kg cylinders a day. The price hikes have made it very expensive to operate. Rates had escalated by almost three to four times when cylinders were in short supply recently. We will have to pass on the increase to customers as cooking costs have gone up significantly.”

“The price of a 19kg cylinder had been hovering around Rs1,750-Rs1,800 through last year and has shot up to Rs3,400-3,500 now with taxes and delivery. Although supply was not an issue last month, we have heard it may be so in June. Industry members have no option but to increase menu rates, as everything in the kitchen, including raw materials, has become expensive,” said an NRAI spokesperson.

Eateries have already been grappling with higher costs of vegetables, edible oil and dairy products. “We have introduced induction stoves to our kitchen, but it cannot replace LPG-based cooking. Electricity bills are shooting up and it is not sustainable. We want to increase prices, but then footfalls will get impacted,” said the owner of a food establishment in Kothrud.

“Commercial LPG rates have almost doubled, although there is no issue with supply as of now. However, we are increasing food rates by 10%-15% at both our outlets after the jump in prices of everything — like gas, cooking oil, vegetables ,raw materials and even salaries,” said the owner of a restaurant and bar in Camp.

Many restaurants have removed from their menu dishes like sizzlers, slow-cooked dals and sauces that need extensive cooking. The price of a 19kg commercial LPG cylinder in Pune has risen from around Rs1,752 in early Feb to over Rs3,100 in June, following successive hikes in May and June. Oil marketing companies have attributed the hike to sustained volatility in international LPG benchmarks linked to tensions in West Asia and concerns over supply security.

GFX

Rates in city per 19kg

Feb: Rs1,752

March: Rs1,896

April: Rs2,092

May: Rs3,084

June: Rs3,128