Commercial LPG price hike forces Hyderabad restaurants to cut costs, jobs at risk
HYDERABAD: A steep ₹993 hike in the price of 19-kg commercial LPG cylinders has disrupted Hyderabad’s restaurant sector. Operators are overhauling kitchens, cutting costs, and scaling down operations.
Restaurant owners say the increase has sharply raised daily expenses. They have little room to pass on costs to customers immediately. “Unlike other cost increases, we cannot pass this on quickly, as it may reduce footfall,” said Abhik Mitra, managing director and CEO of Paradise Food Court Pvt Ltd.
He said the chain uses 100–150 cylinders daily. The hike will push up monthly expenses and strain margins.
Restaurants turn to alternatives, tweak menus
Many establishments now depend less on LPG. They are shifting to other cooking methods. Zain Rehmat-Ullah of Imli Sarai said the restaurant has largely moved away from LPG. “We now use wood, electricity, grills, tandoors, and induction cooking. LPG supply is inconsistent, and prices are too high,” he said.
Restaurants are also redesigning menus. They are cutting down on slow-cooked gravies and deep-fried dishes. Instead, they are promoting items prepared in ovens and grills.
Ayush Agrawal, who works with a city pub, said operators are exploring piped natural gas (PNG). However, alternatives have raised costs further. “We have no choice but to switch to firewood, but it is not viable long term. Along with induction cooking, our input costs have nearly tripled,” said N Bharan of a south Indian snacks chain.
Mohammad Ali, who runs a biryani outlet, said firewood prices have jumped from ₹6 to ₹11 per kg. LPG cylinders now cost ₹4,000 to ₹6,000 in the black market. “We run operations across multiple floors, but we have shut one,” he said. He estimates losses at over 40%.
Workers hit as layoffs begin
The crisis has spread beyond kitchens. It has affected workers in hospitality and delivery sectors. Longer cooking times have caused delays, reduced customer flow, and cut working hours.
Migrant worker groups report reverse migration. “We see hundreds leaving every day. With train tickets scarce, many are taking buses from Kompally and Medchal,” said Raju Ojha, chairman of Bihar Samaj Seva Sangh.
The Telangana Gig and Platform Workers Union said cloud kitchens and mid-sized restaurants face the worst impact. “We have advised delivery partners to move to other e-commerce platforms,” said union president Salauddin Sheikh.
Industry representatives urged businesses to buy LPG only from authorised distributors. This will help them avoid inflated black-market prices.
Political leaders demand rollback
Civil supplies minister N Uttam Kumar Reddy criticised the Centre’s decision. He called it an “unprecedented” burden on small businesses, street vendors, and restaurants. He warned that the hike will push up food prices.
Bharat Rashtra Samithi working president K T Rama Rao also demanded a rollback. Speaking at May Day events, he said the hike could force closures and threaten lakhs of jobs.
