Chennai, May 2: The recent hike in commercial LPG cylinder prices is expected to lead to increased food costs across restaurants in Chennai. This surge could significantly impact both the hospitality sector and the general public.
Restaurants are struggling to manage rising operational expenses. Consequently, prices for staple dishes like idli and dosa could rise by up to 40% in the coming days.
Industry estimates suggest that the cost of a plate of Pongal, currently priced at ₹80, may increase to approximately ₹115, while dosa prices could jump from ₹150 to over ₹200.
This price surge follows a substantial increase in the cost of 19 kg commercial LPG cylinders, which have now exceeded ₹3,200 in Chennai. In contrast, there has been no change in the prices of domestic LPG cylinders, further widening the cost gap for commercial users.
Restaurant operators indicate that this increase leaves little room to absorb additional expenses, forcing them to pass the burden onto customers.
Many establishments rely heavily on LPG for daily cooking, consuming between 5 to 10 cylinders each day. As a result, they have reduced the preparation of dishes that require higher gas consumption.
While some restaurants are considering switching to electric cooking options, the high electricity rates have made this transition financially unfeasible for most.
The hospitality sector is calling for relief measures, including reductions in electricity rates and tax concessions, to alleviate financial pressures. This issue is not limited to restaurants; private hostels and paying guest accommodations are also facing rising costs due to their reliance on commercial LPG cylinder supplies.
However, many operators are not formally recognized as commercial consumers by oil companies, forcing them to depend on private suppliers. This has led to irregular supply and, in some cases, significant price increases during shortages.
Stakeholders in the industry warn that without concrete measures to control fuel prices or provide economic relief to the sector, there could be severe consequences. Not only would food items become more expensive for the average consumer, but the survival of small and medium-sized food enterprises could also be at risk.
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Arpit Soni has had a passion for journalism since the beginning. Now he has turned this hobby into his profession. Arpit, who is a resident of Udaipur, enjoys editing and writing news related to journalism. He has worked as a Senior Content Producer in several important roles at Bhaskar, Patrika, Pratahkal, Punjab Kesari, and Times. Arpit completed his schooling in Udaipur and Jaipur. He has been working in the media industry for more than 10 years, and his journey is still continuing. ✍️📚
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