Skyrocketing LPG Prices Threaten Hospitality Sector's Survival

The hospitality industry faces a severe crisis due to a significant hike in the price of 19-kg commercial LPG cylinders, essential for operating hotels and restaurants. Industry leaders call for government intervention as escalating costs threaten closures, job losses, and operational sustainability.

The hospitality industry is sounding the alarm as the latest increase in the price of 19-kg commercial LPG cylinders, crucial for hotels and restaurants, poses a serious threat to their survival. Priced now at Rs 3,071.50 per cylinder, the escalation comes as another blow to an industry already suffering from closures and job losses.

Industry representatives, like Pradeep Shetty of the Hotel And Restaurant Association (Western India), are urging the government to roll back the hike. Shetty warns that restaurants may need to increase menu prices by 10 to 15 percent, which still might not cover the growing costs. This economic strain could lead to further existential challenges in a sector that is a major employment source.

The price increase of Rs 993 follows previous hikes in April and March, adding significant pressure on businesses already grappling with supply chain disruptions and reduced operations. Many establishments may be forced to scale back operations or close down temporarily, as margins become increasingly unsustainable.