Food Delivery Earnings at Risk After LPG Price Hike

Hyderabad: Food delivery managers are at risk of losing their minimum earnings following the sudden increase in commercial LPG cylinder prices announced by the Central government. They fear that restaurants and small eateries will either pass the burden on to customers or close down, leading to fewer orders and reduced daily revenue.

Gig workers had already suffered as many restaurants increased prices and small eateries closed after the government increased commercial LPG prices by Rs 195.50 per cylinder on April 1. Shortage in cylinder supply further compounded the problem.

The government on Friday announced the highest-ever increase of Rs 993 per 19 kg cylinder, taking the price to Rs 3,315. With this increase, restaurants are expected to put the burden on customers.

Transport and Industrial Workers Union general secretary Venkatesh said increases in food prices could lead to a 5-10 per cent drop in online orders and earnings. “We have already suffered due to LPG price increases in the past and cylinder supply caused by the crisis in West Asia. Now, we will have to suffer further if restaurants and tiffin centers are closed due to the increase in commercial LPG prices,” he said.

Gig workers noted that online orders were already down due to rising temperatures, reducing their earnings. They now fear that the government will also increase fuel prices, further negatively impacting their livelihoods.

Shaik Salauddin, founder president of Telangana Gig and Platform Workers Union, said the real impact of the LPG hike will become clear in three to four days. “We will know whether restaurants will close or increase their food menu prices,” he said. He added that auto and taxi drivers were also afraid of a possible CNG price increase and called on the government to consult stakeholders and unions before taking decisions that would affect a large number of workers.