Chennai, May 2 Food prices at restaurants across the city are set to rise sharply following a steep increase in the cost of commercial LPG cylinders, a move that is expected to significantly impact both eateries and consumers.
Popular breakfast items such as idli, dosa and pongal could see price hikes of up to 40 per cent in the coming days, as restaurants struggle to cope with mounting operational costs.
Industry estimates suggest that a plate of pongal currently priced at ₹80 may increase to around ₹115, while dosa prices could rise from ₹150 to over ₹200.
The surge comes after a substantial hike in the price of 19-kg commercial LPG cylinders, pushing rates in Chennai to above ₹3,200. In contrast, domestic LPG cylinder prices have remained unchanged, creating a widening cost gap for commercial users.
Restaurant operators say the increase leaves little room to absorb additional expenses, forcing them to pass on the burden to customers.
Many establishments rely heavily on LPG for daily cooking, with some consuming between five and ten cylinders a day. As a result, several outlets have begun scaling back the preparation of gas-intensive dishes such as dosa and poori, or limiting service hours to reduce fuel consumption.
While some restaurants have explored shifting to electric cooking alternatives, high electricity tariffs have made the transition financially unviable for most.
The hospitality sector has been calling for relief measures, including reduced power tariffs and tax concessions, to ease the financial strain.
The impact is not limited to restaurants alone. Private hostels and paying guest accommodations are also facing rising costs, as they depend on commercial LPG supplies for cooking.
However, many such operators are not formally recognised as commercial consumers by oil companies, forcing them to rely on private suppliers.
This has led to irregular supply and, in some cases, significantly inflated prices during shortages. Industry stakeholders warn that unless measures are introduced to stabilise fuel costs or provide targeted support, the ripple effects could extend further, affecting affordability for consumers and sustainability for small and mid-sized food businesses.
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