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.
The price of local LPG cylinders increased by about $60, while 19kg commercial cylinders used by hotels became more expensive by 2018 $114.5 as of March 7. This rise comes amid rising global energy costs linked to tensions in West Asia and represents the second price increase in less than a year.
The impact on restaurants and hotels has been exacerbated by the withdrawal of the earlier discount on commercial cylinders, said B C Rao, president, Bengaluru Bruhat Hotels Association.
“Earlier hoteliers got a discount of approx $150 on the maximum retail price (MRP) of commercial LPG cylinders. This has been discontinued from March 1, and now the MRP has increased. So the overall effect on us is there $He said: 265 per cylinder.
Rao said the increase comes at a time when hotels are already facing rising costs for many key components of food preparation. According to him, cooking oil prices increased by approx $15 l $20 per kilogram. Coffee bean prices also rose, while dry fruits, especially cashews widely used in gravies and desserts, saw prices increase by about 20% to 25%.
The combined rise in fuel and component costs may eventually force hotels in Bengaluru to review menu prices, industry representatives said.
Reacting to the increase in LPG prices, Karnataka Chief Minister Siddaramaiah criticized the Union government, saying the decision will increase pressure on households already suffering from inflation.
“The recent increase in prices of LPG cylinders is of deep concern to millions of households across India. At a time when households are already battling relentless inflation, another burden is being placed on the kitchens of ordinary citizens. Domestic cylinders have increased by approx. $“60 years, which increases 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 independence by allying too closely with the US and weakening long-standing energy partnerships with countries like Russia and Iran. He said: “This crisis is not an accident, but the result of a foreign policy that mixes submission with strategy.”
Quoting India’s first Prime Minister, he added: “Pandit Jawaharlal Nehru warned with remarkable clarity: ‘Foreign policy is the result of economic policy.’ When diplomacy becomes a spectacle rather than a strategy, its consequences inevitably reach the kitchens of the poor and the middle class.”
