Food Prices May Rise By 10% As 19 Kg LPG Costs Surge

: A steep rise in the price of commercial LPG cylinders by ₹993 is expected to impact the hospitality sector in Andhra Pradesh; Hoteliers state that there will probably be an increase of up to 10 percent in menu prices.

State-run oil marketing companies have increased 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 commercial 19 kg cylinder has risen to around ₹3,303 from ₹1,970 before March.

Hoteliers said the increase in LPG prices has led to rising input costs, including edible oils, pulses, vegetables and other raw materials. Packaging costs for takeaway and delivery services have also increased.

RV Swamy, president of Andhra Pradesh Star Hotels Association, said the sharp rise in input costs has significantly increased the cost of food preparation. “We may have to increase menu prices by up to 10 percent to make up for losses and maintain operations,” he said.

Hoteliers have urged both the Central and state governments to provide tax breaks or subsidies to cushion the impact of rising costs.

They said piped natural gas (PNG) did not provide adequate relief due to price fluctuations and limited connectivity across the state.

AP Hoteliers Association president G. Srinivasa Rao said the ongoing global energy volatility, including tensions over Iran, has increased fuel and basic commodity prices. “This has affected everything from food items to wages. We can approach the government for help or rationalize menus to manage costs,” he said.

The impact is also felt by roadside restaurants, including fast food centres, tiffin centres, bakeries and sweet shops, all of which use commercial LPG. The increased burden is likely to be passed on to consumers through higher food prices.