Food prices in Chennai restaurants are expected to increase significantly due to a rise in commercial LPG cylinder costs. Popular breakfast items like idli, dosa, and pongal may see price hikes of up to 40%. For instance, the price of a plate of pongal, currently at ₹80, could go up to around ₹115, while dosa prices might increase from ₹150 to over ₹200.
The spike in prices follows a notable increase in the cost of 19-kg commercial LPG cylinders, exceeding ₹3,200 in Chennai. This surge has widened the cost disparity between commercial and domestic LPG cylinder prices. Restaurant operators, facing mounting operational expenses, are compelled to transfer the additional costs to customers.
Many eateries heavily rely on LPG for cooking, with some using between five and ten cylinders daily. To mitigate costs, some establishments are reducing the preparation of gas-intensive dishes like dosa and poori or limiting service hours. Despite considerations for electric cooking alternatives, high electricity rates have hindered a feasible transition for most restaurants.
The hospitality industry is advocating for relief measures such as reduced power tariffs and tax benefits to alleviate financial pressures. Beyond restaurants, private hostels and paying guest accommodations are also grappling with escalating costs due to their reliance on commercial LPG supplies for cooking. However, these entities, not officially recognized as commercial consumers by oil companies, face challenges with irregular supply and inflated prices during shortages.
Industry experts caution that without interventions to stabilize fuel expenses or offer targeted assistance, the repercussions could extend, impacting consumer affordability and the sustainability of small and medium-sized food enterprises.
