Eatery owners in Shimla have expressed strong opposition to the recent steep hike in commercial LPG prices, warning that the increase will lead to a significant rise in food prices and could force many businesses to shut down. The price of a 19-kg commercial LPG cylinder has been raised by over Rs 100 in the latest revision, adding to the financial burden on small restaurants, dhabas, and street food vendors.
Impact on Businesses
According to the Shimla Hotel and Restaurant Association, the price hike comes at a time when the tourism industry is still recovering from the pandemic. Many eateries are already struggling with high rents, labor costs, and raw material prices. The additional cost of LPG will further squeeze their margins, leaving them with no choice but to pass on the burden to customers.
Rajesh Sharma, a local dhaba owner, said, "We use LPG for cooking throughout the day. This hike means an extra expense of nearly Rs 1,000 per month. We cannot absorb this cost, so we will have to increase menu prices." Similar sentiments were echoed by other vendors, who fear a drop in customer footfall if prices rise.
Warning of Inflation Spike
The association has warned that the price hike will trigger a chain reaction, leading to higher prices for cooked food, snacks, and beverages. This could deter tourists and locals alike, further hurting the hospitality sector. They have urged the government to roll back the increase or provide subsidies to small businesses.
In a statement, the association said, "The government must understand that small eateries are the backbone of Shimla's tourism economy. This price hike is a death knell for many. We demand immediate intervention."
The price of commercial LPG has risen by over 20% in the past year, with multiple revisions. While the government has cited global crude oil prices as the reason, industry bodies argue that domestic consumers are being protected at the expense of commercial users.
As the winter season approaches, demand for LPG is expected to rise, exacerbating the situation. Eatery owners are planning to hold protests and submit memorandums to the district administration, seeking relief.
