Food Prices May Rise By 10% As 19 Kg LPG Costs Surge
State-run oil marketing companies have raised commercial LPG prices three times in recent months by around ₹145 on March 1, ₹195 on April 1, and ₹993 on May 1.
VIJAYAWADA: A steep hike of ₹993 in the price of commercial LPG cylinders is set to hit the hospitality sector in Andhra Pradesh, with hoteliers indicating a likely increase of up to 10 per cent in menu prices.
State-run oil marketing companies have raised commercial LPG prices three times in recent months by around ₹145 on March 1, ₹195 on April 1, and ₹993 on May 1. In Vijayawada, the price of a 19-kg commercial cylinder has now risen to about ₹3,303 from around ₹1,970 before March.
Hoteliers said the surge in LPG prices has compounded rising input costs, including edible oils, pulses, vegetables and other raw materials. Packaging costs for takeaway and delivery services have also increased.
Andhra Pradesh Star Hotels Association president R.V. Swamy said the sharp increase in input costs has significantly raised the cost of food preparation. “We may have to increase menu prices by up to 10 per cent to offset losses and sustain operations,” he said.
Hoteliers urged both the Centre and the state government to provide tax concessions or subsidies to cushion the impact of rising costs.
They said piped natural gas (PNG) has not provided adequate relief due to price fluctuations and limited connectivity across the state.
AP Hotels Association president G. Srinivasa Rao said the ongoing global energy volatility, including tensions involving Iran, has driven up fuel and essential commodity prices. “This has affected everything—from food ingredients to wages. We may approach the government for relief or rationalise menus to manage costs,” he said.
The impact is also being felt by roadside eateries, including fast food centres, tiffin centres, bakeries and sweet shops, all of which rely on commercial LPG. The increased burden is likely to be passed on to consumers through higher food prices.
