Nagpur: The ongoing liquefied petroleum gas (LPG) supply disruption following war in West Asia has begun to significantly impact the hospitality sector in the city, with hotel and restaurant owners reporting a sharp rise in operational costs due to soaring fuel prices and costlier raw materials.Hoteliers say their overall expenses have increased by nearly 20-30% over the past two weeks, driven by the shortage of commercial LPG cylinders, prices of which have almost doubled in the open market. In addition, essential food items such as paneer (cottage cheese), butter and curd, along with packaging materials, have witnessed price hikes of up to 40%, further straining business margins.With supply from oil marketing companies (OMCs) stopped, hoteliers pointed out that many are now sourcing cylinders from private companies at significantly higher rates due to limited availability through regular channels.Despite the mounting financial pressure, most eateries have so far refrained from increasing menu prices, fearing a drop in customer footfall. However, industry players warn this may not be sustainable for long.The crisis, which began earlier this month, has disrupted the steady supply of commercial LPG cylinders, pushing many establishments to explore alternative fuel options such as induction cooktops and diesel burners. However, these substitutes come with their own financial challenges.Restaurant owner Sharique Hafeez said the situation has become increasingly difficult to manage. “Paneer, butter, curd and even packaging material costs have increased by around 40%. We are also getting commercial cylinders at high cost, that too in limited stock. If we ask for three cylinders, we are getting just one. We are somehow managing the stock to keep our kitchens running. We have not yet increased prices hoping that things will become smoother, but if the situation persists, our operational costs will increase drastically,” he said, adding that operational cost of his business has spiked by around 20%. Another hotelier, Rahul Gupta, who owns multiple restaurants in the city, said his operational cost has increased by around 30%. “From today, we have increased ₹10 on every dish on our menu due to increased expenses. We are forced to buy expensive gas, as alternatives like induction, which is already expensive, would increase our electricity bill, and diesel burners will also be of higher cost,” he said. With supply constraints continuing and input costs showing no signs of easing, the hospitality sector fears a broader impact on pricing in the coming weeks. If the crisis persists, customers may soon have to pay more for their food, as restaurants struggle to absorb the sustained increase in operational expenses.
