HRAWI flags sharp LPG price hike impact on hospitality sector

Association warns of rising operational costs and pressure on margins across the hospitality sector.

The hospitality industry is facing mounting cost pressures following consecutive hikes in commercial LPG prices. Industry bodies warn that rising fuel costs are significantly impacting operations, margins and overall sustainability.

Industry response

“The latest increase of Rs.993/- per 19-kg commercial LPG cylinder, coming immediately after hikes of Rs.195.50/- in April and Rs.144/- in March, has dealt a severe blow to the hospitality industry. With commercial LPG prices now having risen by a staggering Rs.1,332.50/- within just three revisions, the sector is facing an unprecedented escalation in operating costs at a time when businesses are already struggling with supply disruptions, reduced operational capacity and weakened cash flows. For an industry where energy costs form a major chunk of operational expenditure, this is nothing short of catastrophic. Hotels and restaurants are among the largest consumers of commercial LPG and this sharp increase will disproportionately impact the hospitality sector, particularly small and medium establishments, caterers and businesses dependent on large scale food production. Many establishments are already operating with curtailed hours, limited menus and alternative cooking arrangements due to inconsistent supply and rising fuel costs. This latest revision will further strain margins and make operations increasingly unsustainable. Many have already shut down temporarily; this latest hike will accelerate closures and job losses. The impact extends beyond individual businesses. Rising fuel costs inevitably affect employment, food pricing, events and banqueting operations, tourism linked services and the broader supply chain connected to hospitality. Due to the recent rise in LPG prices, a 10 to15 per cent hike in menu prices is imminent. But even that may not be enough to absorb the impact. We urge the Government to urgently intervene, roll back this hike and stabilise LPG prices to give the sector some breathing space. Without immediate relief, the hospitality industry, a key employment generator, faces an existential crisis,” says Pradeep Shetty, Spokesperson, Hotel And Restaurant Association (Western India) (HRAWI) & VP, Federation of Hotel & Restaurant Associations of India.

NRAI Bengaluru pushes for alternate fuels amid LPG challenges

Industry leaders, policymakers, and solution providers come together to discuss sustainable fuel strategies for the F&B sector.

April , 2026: The National Restaurant Association of India (NRAI) Bengaluru Chapter convened leading restaurant owners, along with public sector representatives and solution providers, at Skydeck by Sherlocks to address ongoing LPG-related challenges and explore practical alternate fuel solutions for the food and beverage sector.

Key focus areas

The meeting focused on supply-side constraints, rising operational pressures, and the need for restaurants to reduce dependence on a single fuel source to ensure business continuity.

Opening remarks and industry insights

Opening the session, Dheeraj Kumar, Director at Knowhere Bar and Kitchen, set the context for a solutions-driven discussion. This was followed by an industry address by Ananth Narayan, who provided members with an update on the LPG situation and outlined NRAI Bengaluru’s ongoing efforts to support its members.

Industry perspective

Adding his perspective, Ananth Narayan, Bangalore Chapter head, said, “The LPG situation has been a real challenge for our members, impacting both costs and day-to-day operations. It is important for restaurants to actively explore practical alternatives, whether it is PNG, biogas, or other solutions. As NRAI, our role is to bring the ecosystem together and ensure our members have access to the right information and partners.”

Focus on PNG solutions

A dedicated session led by Sanjay Kumar Singh, Chief General Manager at GAIL, focused on PNG and piped gas solutions, covering adoption pathways, infrastructure readiness, and key considerations for restaurant operators.

Alternate fuels and innovation showcase

A key highlight of the evening was the Alternate Fuels and Cooking Solutions showcase, which provided attendees with hands-on exposure to emerging solutions aimed at reducing dependence on conventional fuels.

The showcase featured:

• Rishikesh from Carbonlites presenting biogas as a sustainable alternative

• Sanjay Kumar Singh demonstrating PNG solutions for commercial kitchens

• Ganesh from Greenway Appliances showcasing firewood and coal-based stove solutions

• Ambuj Awasthi highlighting efficient coal applications

• Zac from Just BLR Matrix presenting AI-driven automation enabling LPG-free restaurant and central kitchen operations

Conclusion

The meeting underscored the need for collaborative industry action and faster access to viable fuel alternatives amid ongoing supply and cost challenges. It also reflects the NRAI Bengaluru Chapter’s continued commitment to supporting the industry through collaboration and knowledge sharing.