CHENNAI: While the latest hike in the price of 19-kg commercial LPG cylinders used by hotels and restaurants – already hit by closures and job losses due to Gulf war – has added fuel to the fire by upping the cost burden of the hospitality industry, hotel associations in Tamil Nadu have taken a wait-and-see approach before taking any action on jacking up menu prices.
For the time being, they are holding back on increasing the food prices despite the operational strain. The price of a 19-kg commercial LPG cylinder has jumped by over Rs 990 to Rs 3,237, from Rs 2,246.5.
M Venkadasubbu, president of the Tamil Nadu Hotels Association, described the hike as “unavoidable” given the global situation, and hinted at not passing on costs to consumers. “Rather than immediately increasing food prices, we prefer to wait,” he said, adding that the industry will monitor the situation over the coming weeks.
The increase comes amid lingering supply constraints. Restaurants have been facing shortages of commercial cylinders since March following restrictions on availability, forcing many a small eatery to shut temporarily. While the supply has improved marginally, operators continue to grapple with inconsistent access to fuel.
In response, some establishments have shifted to alternatives such as firewood or induction stoves. However, the latter has exposed businesses to power disruptions, particularly during the summer months, increasing reliance on diesel generators and further inflating operating costs.
M Ravi, president of the Chennai Hotels Association and owner of the Vasanta Bhavan chain, described the hike as among the steepest in recent years. “We were already under pressure,” he said, adding that restaurants will adopt a “watch-and-wait” approach for about a month in the hope that geopolitical tensions ease.