City hotels, dhabas brace for impact as LPG price hiked again

Patna: Hotels, dhabas, restaurants, sweet shops and catering business owners across the city are bracing for tougher times after oil marketing companies hiked prices of 19-kg commercial LPG cylinders by Rs 53.50 from June 1. The new rate stands at Rs 3,414.50 in Patna.

Traders said the increase comes as a fresh blow amid delays in delivery, limited supply, and rising costs of raw materials, electricity and labour. For small eateries operating on thin margins, the hike directly impacts daily earnings. Sweet shops and caterers, gearing up for the wedding season, fear they may have to absorb the cost or pass it on through higher menu prices.

For households, however, there is no change. The price of a 14.2-kg domestic LPG cylinder remains Rs 1,011.

Ramesh Kumar, who runs a dhaba near Mithapur Bus Stand, said the hike cuts into already modest profits. “We use two cylinders a day, which means an extra Rs 107 daily or over Rs 3,000 a month. Our profit is barely Rs 200-300 a day. We may have to cut staff or raise prices, though customers resist even a Rs 10 hike,” he said.

Restaurant owners echoed similar concerns. “Raw material, electricity and labour costs are already high. LPG delivery now takes 3-4 days instead of one. This increase will raise our monthly bill by nearly Rs 6,000,” said Alok Singh, manager of a restaurant in Kankarbagh.

The timing has alarmed caterers and sweet shop owners ahead of the wedding season starting mid-June. “We have bookings for about 40 weddings, with rates fixed last month. One baraat dinner requires 8-10 cylinders, so this hike means an additional Rs 500 per event,” said Anita Jha, a caterer from Rajendra Nagar. “If we absorb the cost, we lose margins; if we revise rates, we risk losing clients.”

Sweet shop owners pointed out that input costs are already high. “Milk, ghee and sugar prices have increased. Items like rasgulla and gulab jamun require long hours of gas usage. We may have to raise prices by Rs 20-30 per kg before the wedding season,” said Sunil Gupta, who runs a shop on Boring Road.

Supply constraints are another concern. “Agencies often report no stock for 7-8 days, forcing purchases from the black market at Rs 500 to Rs 1,000 higher per cylinder,” Gupta added.

Budget hotels are also recalculating costs. “A 60-room hotel uses 25-30 cylinders a month, so this means an additional Rs 1,600. Delayed supply forces us to keep buffer stock, blocking capital. A fuel surcharge on food bills may be considered,” said Sanjay Mehta, who owns a hotel near Patna Junction.

Most small operators said they would wait before revising rates. “We will watch for a week. If there is no rollback, prices will have to go up,” Kumar said.

Customers, meanwhile, are bracing for higher food costs. Priya Sharma, a college student, said her monthly mess bill has already risen from Rs 3,000 to Rs 3,500. “Another hike will make eating out difficult,” she said.

Arvind Sinha, a resident of Patliputra Colony, said cheaper eateries are crucial for daily wage earners. “If a Rs 40 thali becomes Rs 50, it will hit labourers, drivers and students the most. Cooking at home daily is not always an option,” he said.