Vijayawada: Rising commercial LPG prices are placing immense pressure on hotels and restaurants across Andhra Pradesh, with many establishments reporting a significant decline in customer footfall and sales. Industry representatives indicate that the sharp increase in fuel costs has compelled eateries to raise food prices, leading many consumers to reduce dining out.
Sharp Increase in LPG Prices
According to hotel owners, the price of a commercial LPG cylinder has surged from approximately Rs 1,900 to Rs 3,305 over four months, drastically increasing operating expenses. The burden became more pronounced during periods of global uncertainty and gas supply concerns linked to tensions in West Asia. Although supply conditions later improved, commercial LPG prices remained high, forcing restaurants to retain increased menu rates.
Impact on Hospitality Sector
The impact is now being felt across the hospitality sector. Restaurant associations estimate that sales at several hotels, restaurants, and tiffin centres have fallen by nearly 30 percent as customers increasingly seek cheaper alternatives or reduce discretionary spending on food. “We had no option but to increase prices because fuel costs account for a major share of our expenses. However, customers are now visiting less frequently, which is affecting our business,” said Regella Subba Rao, a restaurant owner in Vijayawada.
Another hotel operator, Mangina Rama Rao, stated, “The increase in LPG prices has doubled our operational burden. Even after raising food prices, profit margins remain under pressure because customer numbers have declined.”
Smaller Vendors Weathering the Storm
Interestingly, smaller roadside eateries and street food vendors appear to be weathering the situation better, as they continue to attract customers with comparatively lower prices.
Appeal to Government
Industry stakeholders have appealed to the government to consider reducing commercial LPG prices to provide relief to the sector. “If gas prices come down, we can immediately reduce food prices. That is the only way to bring customers back and revive sales,” said Ramesh Kumar, a representative of the AP hotel association.
With costs continuing to rise and customer spending remaining subdued, many restaurant owners fear prolonged financial stress unless fuel prices are moderated in the coming months.
