Hotel and restaurant associations across India have expressed mixed reactions to the recent reduction in commercial LPG cylinder prices, calling the relief smaller than expected while stressing that input costs remain high.
Industry Says Cut Falls Short of Expectations
Karnataka State Hotels’ Association president G.K. Shetty said the ₹177 reduction per 19.2 kg commercial LPG cylinder in Bengaluru was significantly lower than industry expectations of a ₹500 cut. He noted that crude oil prices have already declined to levels seen earlier this year, arguing that a deeper correction was justified.
Shetty added that the industry anticipates further price adjustments after July 15 and hopes cylinder rates will stabilize around ₹2,000 by the end of the month.
Restaurants Call Relief Limited but Welcome Step
In Chennai, Hotel Association president M. Ravi described the price reduction as a “small relief,” comparing it to a brief summer rain. However, he emphasized that rising costs of essential ingredients like rice and dal continue to strain the sector, and argued that broader price normalization is still needed.
High Input Costs Continue to Pressure Businesses
Sathish D. Nagasamy, managing director of Dindigul Thalappakatti, said LPG prices have still not returned to normal levels. He pointed out that chicken and other raw material costs have also increased, and stressed that meaningful relief will only come when all input costs fall together, given how closely they are linked to LPG prices.
Mumbai Restaurateurs See Little Impact
Restaurant owners in Mumbai said the reduction would not significantly affect operations or menu pricing. One owner noted that although cylinder prices had earlier increased sharply, the current cut is too small to offset past hikes. He also cited uncertainty in global geopolitics, particularly tensions in West Asia, as a factor keeping costs volatile.
Calls for Broader Cost Correction
According to Sree Annapoorna Group CEO Jegan Damodarasamy, LPG prices had previously doubled and the latest cut represents only a limited correction. He added that transportation and packaging costs had also risen due to global instability, and these too need to fall before restaurants can consider revising menu prices.
When asked about potential price cuts in menus if LPG falls to ₹2,000, he said any adjustment would depend on how quickly costs stabilize and how much savings are actually realized.
Relief for Some Operators Amid High Costs
Piyush Kankaria of the National Restaurant Association of India (Kolkata chapter) welcomed the move, saying restaurants have been under sustained pressure from high input costs. He noted that fuel can account for up to 15% of kitchen expenses, and even a modest reduction helps stabilize operations and maintain menu prices in a price-sensitive market.
Industry Urges Return to Pre-War Price Levels
Echoing similar views, Sudesh Poddar of the Hotel Restaurant Association of Eastern India said the government should aim to bring LPG prices back to pre-conflict levels to ensure long-term stability for the hospitality sector.
