LPG price shock hits eateries, food costs set to rise by 20-30%

Trichy/Madurai: A steep Rs 993 hike in the price of commercial LPG cylinders has hit restaurants and roadside eateries in Trichy and Madurai, forcing many small outlets to shut temporarily and prompting larger establishments to plan a 20-30% increase in food prices.

The price of a 19-kg commercial LPG cylinder, which cost around Rs 2,200 earlier, has risen to Rs 3,200 from Friday. Hoteliers said the shortage of commercial LPG has also fuelled black-market sales, with cylinders reportedly being sold for as much as Rs 4,000.





Small eateries, already struggling with rising input costs, said they were unable to absorb the sudden increase. "We have closed our eatery because we cannot afford to spend more than Rs 3,000 on a cylinder every three days. If we raise food prices, customers who come for affordable meals will stop visiting," said R Sundar, who runs a roadside eatery in Palakkarai.

Several small-scale outlets have already increased the prices of idli, dosa and pongal by 10-20% due to the LPG shortage and soaring refill costs.

Hotel owners said further hikes in food prices were inevitable, especially during the peak summer travel season. "May and June are peak months for us as people travel during vacations. Food prices may go up by 20-30% in the coming days. Switching to firewood or electric stoves is not easy because kitchens and workers are not prepared for it," said S Sundaresan, secretary of the Trichy District Hotel Owners Association.

Prices of parotta, dosa and deep-fried items, which consume more LPG, are expected to rise sharply. K L Kumar, vice-president of the Tamil Nadu Hotel Association, said some restaurants had started shifting to firewood and electric cooking methods to cope with the crisis. "All hotels are being forced to increase food prices. Without a hike, we cannot sustain operations," he said, alleging that commercial LPG cylinders were being diverted to the black market.

Trade bodies urged the govt to revise LPG prices gradually instead of imposing a steep increase at one go. M K Mohammed Muhaiyuthdeen, secretary of the Madurai Coffee Tea Merchants' Association, said the hike would severely affect small traders. "For businesses that can continue operations, increasing prices is the only option. The govt should immediately reconsider the hike as it disproportionately affects small business owners," he said.
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