Chennai, May 2:
The recent steep hike in commercial LPG cylinder prices has dealt a heavy blow to hotels and eateries across Chennai, forcing many to rethink pricing and operational strategies amid rising input costs.
Hotel owners say the increase—amounting to nearly ₹1,000 per cylinder in recent revisions—has significantly escalated daily expenses, particularly for small and mid-sized establishments that rely heavily on LPG for cooking.
“We are already struggling with high raw material costs and labour charges. This sudden LPG price hike has added another layer of burden,” said R. Suresh, a restaurant owner in T. Nagar. “If this continues, we may have no option but to increase food prices.”
In busy commercial hubs like Parrys, Velachery, and Anna Nagar, eateries reported a sharp spike in monthly fuel bills. Many establishments use multiple cylinders daily, amplifying the financial strain.
“Earlier, fuel costs were manageable. Now, our monthly LPG expenses have gone up by 25–30%,” said Meena Krishnan, who runs a mid-sized mess in West Mambalam. “We are trying to absorb the cost, but it is becoming unsustainable.”
Industry representatives warn that the impact will eventually be passed on to consumers. “Hotels cannot indefinitely absorb such increases.
A price revision in menu items seems inevitable if the government does not intervene,” said a senior office-bearer of the Chennai Hotels Association.
Some small vendors and roadside eateries are already feeling the pinch. “Our margins are very thin. Even a small hike affects us.
Customers resist price hikes, but we have no choice,” said Murugan, a street food vendor in Triplicane.
The price rise has also triggered concerns about inflation in the food sector, with experts cautioning that repeated hikes could dampen business and reduce customer footfall.
Hotel owners and trade bodies have urged the Centre to reconsider the hike and provide relief, warning that continued increases could hurt both businesses and consumers in a city known for its vibrant food culture.