Chennai: Food prices are set to rise sharply, with idli, dosa and pongal at restaurants expected to cost up to 40% more, after a steep increase in price of commercial LPG cylinders. A plate of pongal now sold for 80 is likely to cost at least 115, while dosa prices could go from 150 to 210, according to Chennai Hotels Association. The surge follows the Centre's decision on Friday to raise the price of a 19kg commercial cylinder by 993 across the country, taking the rate in Chennai to 3,237. Domestic cylinders remain unchanged at 928.5.
Restaurant owners cite rising overheads
Restaurant owners said the increase leaves little room to absorb costs. "We cannot avoid increasing the prices. Overheads have become too expensive," said Chennai hotels association secretary R Rajkumar, noting that LPG prices had risen from 1,997 to 2,150 after tensions escalated in West Asia. Restaurants which consume 5-10 cylinders of gas a day were also cutting back on service hours for gas-intensive dishes such as dosa and poori.
Shift to electric cooking faces hurdles
Some restaurants have partly shifted to electric cooking, but operators said high power tariffs limit the transition. "The govt's promise to reduce power tariffs for restaurants and hotels by 2 per unit has not happened. At least the 18% GST on electricity bills should be reduced and some subsidy extended to the sector," said the association president M Ravi, who heads Vasantha Bhavan.
Hostel and PG operators face parallel crisis
Private hostel and paying guest operators said they face a parallel crisis, as they are not recognised as commercial consumers by oil companies such as IOC and HP, and must depend on private suppliers. "During shortages, many have been forced to buy cylinders in the black market for as much as 10,000," said Tamil Nadu hostel and PG owners association treasurer G Karthick.
