Food prices at restaurants across Chennai are set to rise sharply following a steep hike in the cost of commercial LPG cylinders, with popular breakfast staples such as idli, dosa, and pongal expected to cost up to 40% more in the coming days. The surge is being driven by a substantial increase in 19-kg commercial LPG cylinder prices, which have climbed to above ₹3,200 in Chennai, while domestic LPG rates remain unchanged.

How Much Prices Could Rise

Industry estimates indicate that a plate of pongal, currently priced at ₹80, may rise to around ₹115. Similarly, dosa prices could climb from ₹150 to over ₹200. Restaurant operators say the scale of the LPG hike leaves them with little room to absorb additional operational costs, effectively forcing them to pass the burden on to customers.

Many establishments in the city depend heavily on LPG for daily cooking, with some consuming between five and ten cylinders a day. The widening gap between commercial and domestic LPG prices has made the financial strain particularly acute for smaller eateries operating on thin margins.

Restaurants Scaling Back Operations

Faced with mounting fuel costs, several outlets have reportedly begun scaling back the preparation of gas-intensive dishes such as dosa and poori, or limiting service hours to reduce fuel consumption. While some establishments have explored shifting to electric cooking alternatives, high electricity tariffs have made that transition financially unviable for most operators.

This comes amid broader pressure on the hospitality sector, which has been calling for targeted relief measures including reduced power tariffs and tax concessions to ease the financial strain. Notably, this is not the first time commercial LPG price spikes have triggered a food inflation wave in Tamil Nadu's restaurant industry.

Impact Beyond Restaurants

The ripple effects extend beyond eateries. Private hostels and paying guest accommodations across Chennai are also facing rising costs, as they depend on commercial LPG supplies for cooking. However, many such operators are not formally recognised as commercial consumers by oil companies, according to industry stakeholders, forcing them to rely on private suppliers.

This has led to irregular supply and, in some cases, significantly inflated prices during shortages — compounding the affordability challenge for residents who depend on these facilities.

Industry Warnings and What's Next

Industry stakeholders warn that unless measures are introduced to stabilise fuel costs or provide targeted support, the ripple effects could extend further, threatening affordability for consumers and the sustainability of small and mid-sized food businesses. The hospitality sector is expected to formally approach state authorities seeking relief, with the outcome likely to determine how quickly — and how steeply — menu prices are revised across the city.