Andhra hotels and restaurants to raise prices by 10% after LPG rate hike

Hotels and restaurants in Andhra Pradesh will increase menu prices by up to 10 per cent after a sharp rise in commercial cooking gas cylinder prices, according to the Andhra Pradesh Star Hotels Association.

The association said on Friday that the increase in commercial LPG prices has added pressure on the hospitality industry, forcing hotels and restaurants to pass on part of the cost burden to customers.

On Friday, the Union Government increased the price of 19-kg commercial cooking gas cylinders by Rs 993, taking the price to nearly Rs 3,315 per cylinder in cities such as Hyderabad. The increase comes amid rising global energy prices linked to the West Asia conflict.

“Effective from May 1st, the price per cylinder has surged by Rs 993, delivering a severe blow to the hotel and restaurant industry…Hotel owners are incurring heavy losses due to increased input costs…we have no choice but to increase menu prices by up to 10 percent,” association president RV Swamy said in a press release.

Swamy said commercial gas prices have risen by nearly Rs 1,303 over the last three months, increasing operational costs across the hospitality sector.

He said the financial pressure is affecting both LPG users and businesses using Piped Natural Gas (PNG), as global energy market fluctuations continue to push up fuel costs.

According to the association, gas remains the primary fuel source for hotels and restaurants, and the steep increase in prices is making day-to-day operations difficult to sustain.

Apart from fuel expenses, the industry is also facing higher costs for essential commodities, including edible oils, pulses and vegetables.

Referring to rising sunflower oil prices, Swamy said the cost of provisions and packaging materials has also increased sharply in recent months.

He added that expenses linked to takeaway and delivery services have continued to rise.

The association has urged the government to step in with tax concessions or subsidies to support the hospitality sector amid mounting operational costs.

Swamy also appealed to customers to cooperate with hotels and restaurants as businesses attempt to maintain quality standards despite the financial pressure.

(With inputs from agencies)