Restaurant owners in Kolhapur have started increasing the prices of food items by up to 20% following a steep hike of Rs 993 in commercial LPG cylinder rates. This has pushed the cost of a 19kg cylinder up by nearly 50% to Rs 3,031 from Rs 2,038.
Impact on Small Eateries
The impact is already visible at small eateries. At Akshay Hukerri's Veluvan hotel in Ruikar Colony, the price of thalipeeth has gone up from Rs 80 to Rs 100 per plate, while special tea now costs Rs 30 instead of Rs 25. Hukerri said restaurant operators have already pruned menus and are raising prices cautiously to offset the LPG hike without excessively burdening customers. "Tourist footfall has increased in Kolhapur, but shortages and rising LPG prices are limiting our ability to meet demand," he said.
Additional Cost Pressures
Small eatery owners say the latest hike has added to existing cost pressures. Popat Asbe, who runs a thali joint, said he would raise the price of a thali from Rs 120 to Rs 125 after an earlier increase last month due to LPG shortages. "We have shifted to induction for making tea, but prices of essentials have also surged. Cottonseed oil has risen from Rs 115 to Rs 140 per litre, and coriander now costs Rs 40 a bunch compared to Rs 15 a few weeks ago," he said. Hotels and caterers that cook in bulk continue to rely on traditional chulhas, while several smaller eateries are also considering switching to them to reduce dependence on LPG.
Industry Response
Sachin Shanbag, president of the Kolhapur Hotel Owners' Association, said the hospitality sector is under severe strain. "Hoteliers are squeezed between rising fuel costs and customer resistance to price hikes. Even those who invested in solar power to reduce LPG usage are hit by higher electricity tariffs and grid support charges," he said, adding that the sudden rise in LPG prices has further destabilised already thin margins.
