Gurgaon/Noida: Eating out and ordering in are likely to get significantly costlier as a sharp rise in commercial LPG cylinder prices squeezes restaurants, street vendors and large-scale food operations alike — with most saying they can only absorb the pressure for so long before passing it on to consumers.The hike has pushed up operating costs across the board and, coupled with recent minimum wage increases, is compressing margins at both ends. For now, most restaurateurs are holding off on menu revisions and exploring alternatives.“We will explore electric induction and piped gas connections to mitigate the impact. We don’t want to pass on the cost to the customer as of now,” said Joy Singh, owner of Raasta Cafe and secretary of National Restaurant Association of India (NRAI). He flagged that availability of commercial LPG cylinders is a persistent problem in itself.Noida restaurateurs echoed the wait-and-watch approach. “The price of commercial LPG cylinders has been fluctuating for a while, with one of the most significant hikes seen now. We are not in a position to change menu prices yet — we want to see how far this goes,” said Varun Khera, president of NRAI’s Noida chapter. He added that reprinting menus is an added cost, and establishments are currently absorbing the hikes as losses. “The price hike is hurting our pockets. We are running our establishments out of our own pockets right now,” he said.Others are less optimistic about how long that can last. “Margins are shrinking, and if the situation continues, passing costs to consumers will be unavoidable,” said another restaurant owner.Industrial-scale food operations say a price revision is already a given. PFTI chairman PK Gupta, who supplies around 30,000 corporate meals daily, said fuel accounts for 10% of input costs. “Commercial LPG was first raised by Rs 400 in March and now by Rs 993,” he said, adding that supply constraints compound the pressure. “We are not getting the required number of cylinders.” Haryana’s recent minimum wage hike has added another layer of cost.Street vendors, with the least room to absorb shocks, haven’t waited — prices are already up, with another round flagged. “It is becoming difficult to operate under the current situation,” said Mani, who runs a small restaurant in Sector 14.The 5kg portable cylinders — used largely by migrants without domestic connections — have also risen by Rs 261 to around Rs 810, as they are priced on par with commercial cylinders.Earlier in March, NRAI had written to Union petroleum minister Hardeep Singh Puri, urging the govt to ensure adequate supply of commercial LPG cylinders to restaurants. The association noted that the supply situation on the ground had not improved and warned that the fresh hike in commercial LPG prices would put additional pressure on restaurants and the wider food services sector.“At a time when businesses are struggling, govts in Haryana and UP have raised minimum wages, and now there’s another increase in commercial LPG prices. Instead of supporting an industry that generates employment and revenue, more obstacles are being created,” Deepak Maini of PFTI said.India imports nearly 60% of its LPG, with much of it routed through the Strait of Hormuz. The recent closure of this critical passage amid the US–Israel–Iran conflict reduced supplies from key partners, including Saudi Arabia and the United Arab Emirates.(With inputs from Ashni Dhaor)
