Commercial LPG Price Hike Threatens Hospitality Sector with Job Losses and Higher Menu Costs
Commercial LPG hike to aggravate job losses, drive up menu prices: Industry
Business Standard
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The recent increase in commercial LPG cylinder prices by ₹993 to ₹3,071.50 has severely impacted India's hospitality industry, prompting calls for government intervention. Industry leaders warn of a potential 10-15% rise in menu prices, which may not sufficiently offset the increased operational costs, risking further job losses and business closures.
- 01Commercial LPG prices have risen by ₹993, reaching ₹3,071.50 per 19-kg cylinder.
- 02The hospitality industry faces an imminent 10-15% increase in menu prices.
- 03The cumulative price increase of ₹1,332.50 over three hikes has severely strained operations.
- 04Many establishments are already reducing hours and menus due to rising costs.
- 05Without government intervention, further job losses and business closures are likely.
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The hospitality industry in India is facing a crisis following a ₹993 increase in the price of 19-kg commercial LPG cylinders, bringing the total cost to ₹3,071.50. This hike comes on the heels of previous increases of ₹195.50 in April and ₹144 in March, totaling ₹1,332.50 in just three revisions. Pradeep Shetty, spokesperson for the Hotel and Restaurant Association of Western India and Vice President of the Federation of Hotels and Restaurants Association of India, stated that a 10-15% increase in menu prices is expected, but this may not be sufficient to counteract the rising operational costs. Many establishments are already facing reduced operational capacity and inconsistent supply, leading to temporary closures and job losses. Industry leaders are urging the government to intervene and stabilize LPG prices to prevent further damage to this key employment sector.
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The rise in LPG prices will likely lead to higher menu prices, affecting consumers and potentially reducing foot traffic in restaurants and hotels.
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