Commercial LPG price hike squeezes eateries, small traders

Ranchi: Commercial kitchens across Ranchi woke up to another cost shock on Monday as the price of a 19-kg LPG cylinder was raised by Rs 53.50, putting fresh pressure on restaurants, caterers, food stalls, and small businesses already dealing with rising fuel expenses.

Officials of the Indian Oil Corporation Ltd (IOCL), Jharkhand division, said that the commercial LPG cylinder price in Ranchi has increased from Rs 3,250.50 to Rs 3,304 with effect from Monday. Besides, the price of 5-kg free trade LPG cylinders stands at Rs 821.50 after being raised by Rs 11 nationally.

Traders said the increase will affect small commercial users dependent on smaller cylinders.

For many food businesses, the increase has become difficult to absorb. Restaurant owners said fuel now forms one of the biggest components of kitchen expenses after raw materials and staff wages. Several eateries, especially smaller establishments, say they are restructuring menus to manage costs.

“Earlier, we removed several items, especially Chinese dishes that consume more gas, grilling and longer cooking time, from the menu. Customers won’t support high prices of dishes on offer, but our kitchen cost keeps rising every few months,” said Amit Sahu, who runs a fast-food outlet at Dangra Toli.

Owners of dhabas and tea-snack counters said commercial LPG has become significantly more expensive over the past year, leaving them with little room to maintain margins.

The impact is being felt beyond restaurants.

Sweet shop owners in Ranchi said they are already facing the brunt of repeated commercial LPG price hikes, as most of their production, from boiling milk and preparing sugar syrup to frying snacks and sweets, runs on gas throughout the day.

Dilip Das, a small bakery operator at Albert Ekka Chowk, said, “Oven and heating costs have risen steadily. With fuel expenses climbing alongside raw material prices, profit margins are shrinking while raising prices further risks losing customers.”