New Delhi. A day after the price of commercial LPG cylinder was increased by 50 per cent, restaurant operators and street vendors in Delhi said that if this trend continues, food prices will increase, financial pressure will increase and employment may also be affected. The price of commercial LPG cylinder has been increased by a huge amount of Rs 993.
The prices have been increased for the third consecutive month amid a rise in global energy prices due to the ongoing conflict in West Asia. Manpreet Singh, honorary treasurer of the National Restaurant Association of India, said restaurants are already struggling with supply challenges and rising costs. He said that there is difficulty in availability of cylinders and black marketing is also increasing in many unorganized sectors.
He said that the price which was earlier around Rs 1,600 and would come down to Rs 1,300 with discount, has now increased to Rs 3,000 to Rs 4,000 per cylinder. A medium-sized restaurant requires two to five cylinders daily, putting huge pressure on costs. He said that the situation may become more difficult for small establishments.
The association has advised restaurants to switch to piped cooking gas (PNG) connections from Indraprastha Gas Limited as a long-term solution. Kabir Suri, owner of ‘Mamagoto’ located in Khan Market, said that the impact of almost three times increase in cylinder prices is clearly visible on the industry. He said the pressure has increased due to rising fuel and logistics costs and if this continues, it will be inevitable to increase food prices.
The conflict in West Asia has caused global oil prices to rise by nearly 50 percent, driving up fuel and transportation costs. A restaurant operator in West Delhi said he is trying to pay salaries to employees on time despite rising costs, but if the situation continues for long, menu prices will have to be increased. Another operator from North Delhi said that just cutting expenses will not suffice and it will become difficult to run the business if fuel prices remain high.
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