Andhra Pradesh Star Hotels Association cites a Rs 993 jump in commercial LPG cylinders and rising costs of edible oils, vegetables, and packaging as key pressures on the hospitality sector
The Andhra Pradesh Star Hotels Association said a steep increase in commercial LPG cylinder prices has hit the hospitality sector hard, leaving hotels and restaurants with little option but to raise menu prices by up to 10 per cent.
The Union government has raised the price of 19-kg commercial LPG cylinders by Rs 993, pushing the cost to nearly Rs 3,315 per cylinder in cities such as Hyderabad. The hike follows a surge in global energy prices amid the ongoing West Asia conflict.
“Effective from 1 May, the price per cylinder has surged by Rs 993, delivering a severe blow to the hotel and restaurant industry…Hotel owners are incurring heavy losses due to increased input costs…we have no choice but to increase menu prices by up to 10 per cent,” said association president R V Swamy said in the issued statement..
Raising concerns over rising operating expenses, he said commercial LPG prices have climbed by around Rs 1,303 over the past three months, compounding cost pressures for the industry.
He added that the burden is not limited to LPG users, as businesses using piped natural gas are also seeing higher costs due to volatility in global energy markets. With fuel forming a critical part of operations, the sustained increase in prices is making it difficult for establishments to sustain daily activities.
Apart from fuel, the industry is also dealing with a rise in the cost of key inputs such as edible oils, pulses and vegetables. Swamy noted that sunflower oil prices have gone up sharply, while other essentials and packaging materials have also become more expensive.
He further highlighted that costs associated with takeaway and delivery packaging have been steadily increasing, adding to the financial strain.
Seeking immediate relief, Swamy urged the government to step in with measures such as tax concessions or subsidies to support the sector. He also appealed to customers to be understanding as businesses try to maintain quality despite mounting cost pressures.
