Thiruvananthapuram: A sharp increase in commercial LPG prices has unsettled Kerala’s restaurant sector, with industry representatives indicating that menu rates may have to rise by 50–60%. On Friday, the Centre raised the price of 19 kg commercial LPG cylinders by ₹993, pushing the cost beyond ₹3,000 in the state.
The hike is seen as another setback for food business operators, many of whom are already struggling due to an ongoing LPG supply crisis linked to tensions in West Asia. Industry bodies have cautioned that the situation could lead to job losses and higher food prices.
The Kerala Hotel and Restaurants Association (KHRA) has announced a statewide shutdown on May 6, urging both the central and state governments to step in with immediate relief measures, The New Indian Express reported.
KHRA state president G. Jayapal reportedly stated that the sector is under intense financial strain and cannot absorb the latest increase. He pointed out that the combined rise in the prices of LPG and essential commodities such as milk, vegetables, pulses, and cooking oil has made operations increasingly unviable. He indicated that sustaining businesses may require menu price hikes of up to 50–60%.
At the same time, restaurant owners are concerned that steep price increases could drive customers away. Sasidharan, a restaurant owner in Thiruvananthapuram, suggested that even modest hikes are difficult to implement, noting that raising the price of a cup of tea significantly in a short time could negatively affect customer demand.
KHRA has argued that commercial users are bearing a disproportionate share of the LPG price burden. The association pointed out that while domestic consumption accounts for the majority of LPG usage, price increases are largely imposed on the commercial segment, which, it claims, benefits both government tax revenues and oil company margins.
The association has called for relief measures including subsidies, easing of loan repayments, reduction or deferment of licence fees, and tax relaxations.
Support for the proposed shutdown has come from the Kerala Vyapari Vyavasayi Ekopana Samithi and several political parties. The CPM state secretariat has also called for widespread protests, alleging that the price hike would fuel inflation and place additional pressure on the public. The party further claimed that the move reflects a policy approach that prioritises corporate interests.