Bengaluru hotels to hike prices as commercial LPG gets pricier

Bengaluru: As the prices of commercial gas cylinders were hiked on Wednesday, the hoteliers in Bengaluru are gearing up to increase the prices of food items.

Customers can expect a general increase of 10% to 15% across the menu, with coffee and tea expected to rise by Rs 2 to 5 (reaching prices of Rs 20 or more), while breakfast items like idli, vada, and dosa, as well as various rice items, are likely to see a hike of Rs 5 to Rs 15 per plate. Larger meals may see an increase of Rs 25 to Rs 30, as small and medium-sized hotels struggle to absorb the high input costs and the 18% GST on commercial cylinders.

Speaking to DH, PC Rao, President of the Bengaluru Hoteliers’ Association, said that a price hike in food items is inevitable. “Hoteliers cannot run businesses after paying so much to procure cylinders. We urge the Central government to reduce the prices,” he said.

Harish Udupa, owner of a Darshini in NR Colony, said, “We have already increased the prices when the crisis was at its peak a few weeks ago and managed to get through it by paying up to Rs 5,000 per cylinder. If this continues, we will struggle to even break even.”

Narayan Desai, a customer in one of the restaurants DH visited, said, “The food prices have already gone up and if the increase it any further, we will stop visiting restaurants.”

A hotel manager in Hosakerehalli, on conditions of anonymity, said, “If the prices market goes up, it will go up in the black market as well. Many of the restaurants in the surrounding areas have shut down because of the gas crisis.”

The hoteliers also spoke about letting go of a few employees if the crisis continues.

Auto LPG scarcity

While the prices of the Auto LPG remain unchanged, the scarcity for the fuel remains. Many gas stations have closed down for the last 15 days. The price of the gas is hovering between Rs 98 and Rs 125. Rakesh Nayak, an employee at one of the gas stations, said, “For the last week, supply has regularised, but prices remain over Rs 100 while earlier it was Rs 60.”

Plight of migrants

The relentless surge in commercial LPG prices has also pushed Bengaluru’s migrant labor force into a corner.

For thousands of workers living in shared informal housing, the 5 kg cylinders (Free Trade LPG) have long been a survival essential. However, effective May 1, 2026, the price of these mini-cylinders has been hiked by Rs 261, making them nearly double their original cost in some markets.

Many workers who spoke to DH said that, lacking local address proof for domestic connections, we are forced to navigate the black market where 5 kg refills now command between Rs 1,100 and Rs 2,000.

To cope with it, some have stopped cooking altogether, surviving on instant meals or expensive street food like vada pav and chana. Others have begun a reverse migration and are returning home.