Restaurants and eateries in Bengaluru are set to increase their prices following a substantial hike in the cost of commercial Liquefied Petroleum Gas (LPG) cylinders. The price of a 19-kg commercial LPG cylinder has seen an unprecedented rise, climbing by ₹993 to ₹3,152 in Bengaluru, marking the highest ever recorded price for the commodity in the city.
Steep Price Increase
This latest price revision, effective May 1, 2026, is part of a series of increases that have pushed the cost of commercial LPG cylinders up by over 70% in just the past 60 days. The current surge is attributed to global energy market fluctuations and geopolitical tensions in West Asia, which have disrupted supply chains and led to rising crude oil prices. This marks the third consecutive monthly increase for commercial LPG, following hikes in March and April.
The price of a commercial LPG cylinder in Bengaluru was ₹1,844 on March 1, increasing to ₹2,162 on April 1. The latest hike on April 30 alone saw a 45% jump, from ₹2,162 to ₹3,152. This drastic escalation has placed considerable pressure on businesses that rely heavily on cooking gas.
Impact on Food Businesses
Hotel and restaurant associations have indicated that a price hike in food items is now inevitable. P.C. Rao, President of the Bengaluru Hotels’ Association, stated that an increase in prices at restaurants and eateries is unavoidable due to the mounting operational costs. LPG constitutes a significant portion of kitchen expenses, with industry estimates suggesting it accounts for 8-15% of operating costs for many establishments.
The repercussions of the rising LPG costs extend beyond just dine-in establishments. Bottled water and spice manufacturers are also anticipating price increases. The ongoing LPG crisis has also been impacting street food vendors across India, with many being forced to raise their prices or reduce operations due to supply disruptions and inflated costs. A recent survey indicated that over half of consumers have noticed price increases in street food over the past week, with hikes ranging from 10% to over 25%.
Broader Economic Factors
The surge in commercial LPG prices is closely linked to global energy trends and supply disruptions, particularly in West Asia. These international factors have a direct impact on India’s fuel costs, as the country imports a significant portion of its LPG requirements. While domestic LPG cylinder prices for household consumers remain unchanged, commercial users are bearing the brunt of the market volatility. This situation highlights the sensitivity of the food service sector to input cost fluctuations and its direct impact on consumer prices.
The Chenab Times News Desk