Mumbai's restaurant and roadside eatery owners expressed shock and anxiety on Friday as the Central government implemented the steepest single increase in commercial LPG prices, nearly Rs 1,000 per cylinder. Industry experts warned that petrol and diesel could be next in line for price hikes.
Sharp Rise in LPG Prices
A 19 kg commercial LPG cylinder, previously sold for Rs 2,031, now costs Rs 3,024—an increase of Rs 993. The smaller 5 kg domestic cylinder, commonly used by migrant workers and small vendors, rose by Rs 241 from Rs 596.50 to Rs 838. However, the standard 14.2 kg domestic LPG cylinder remains unchanged at Rs 912.50.
Impact on Restaurants and Eateries
Vijay K Shetty, president of the Association of Hotels and Restaurants (AHAR), warned that menu prices may soon rise by 15%. He described the fuel hike as "a bullet fired by the government at hoteliers from point blank range," noting it is the third painful price increase since the Iran conflict erupted on February 28. Some eateries reported that alternatives like piped natural gas, induction cooktops, and coal remain scarce and expensive.
Aarav Shetty, owner of Udupi Shrikrushna near Kamla Mills Compound and Nutan Bar and Restaurant at Reay Road, stated that he and many fellow hotel owners plan to increase menu prices by at least 20% from Saturday. "We have been absorbing prices since the war time, which was approximately almost Rs 1,500 on each cylinder. Now this latest rise will not be sustainable," he added.
The owner of a 'Barah handi' restaurant in Kumbharwada explained, "We use LPG cylinders to cook lunch for daily wage workers. These poor customers are worst hit. We will have to increase prices, but they cannot afford to pay higher rates twice in two months."
Mohsen Husaini of Lucky Restaurant in Bandra said, "I was expecting a rise but not to this extent. With cylinder prices increasing by about Rs 1,000, it is becoming unsustainable, especially considering my daily requirement of 10-12 cylinders. I have managed to hold prices steady for 1.5 to 2 years, but now I am left with no choice but to increase rates by at least 10%."
Parvez Patel of Parsi restaurant Ideal Corner at Fort remarked, "The Rs 1,000 increase is unbearable. We are helpless. Fine dining restaurants may have a huge profit margin, but we value-for-money joints are suffocating."
Hotelier Kamlesh Barot of Revival Restaurants said, "We have no other choice left but to raise our menu prices and pass on a bit of the burden to diners."
Impact on Bakers and Confectioners
Ironically, old-style bakers and confectioners had recently switched from woodfire or coal to LPG and piped gas under BMC orders. Confectioner Salahuddin Khan, owner of Kwality Bakers, noted, "The LPG increase will directly raise production costs for a bakery, making price revisions likely. Even for PNG-based manufacturers like us, costs have increased significantly. The Bread Manufacturers' Association will explore ways to minimize the burden on consumers while maintaining operational viability."
Industry Reactions
AHAR's Shetty said, "From fast food to a fine dine family restaurant, everyone has been badly impacted by the latest hike, and this will definitely not be rolled back during war time." He emphasized that hoteliers will not be able to absorb the hike unlike the past two times. Moreover, commercial LPG distribution remains restricted to 70%, not available at 100%.
Oil marketing companies attributed the LPG increase to "turmoil in global energy markets." A senior member of the Petrol Dealers' Association suggested that diesel may be next in line for a price hike.
Pradeep Shetty, spokesperson for the Hotel and Restaurant Association (Western India, HRAWI), said, "The latest increase of Rs 993 after Rs 195.50 in April and Rs 144 in March makes a staggering hike of Rs 1,332.50 within three revisions. Our sector is struggling with supply disruptions, reduced operational capacity, and weakened cash flows, leading to curtailed operations, limited menus, and even temporary closures. Hotels and restaurants are among the largest consumers of commercial LPG. This hike will accelerate closures and job losses. A 10-15% hike in prices is imminent. Even that may not be enough to absorb the impact. We urge the government to roll back this increase."
