Eatery owners and hotel operators in Shimla have strongly criticised the recent sharp increase in commercial LPG cylinder prices, warning that the hike will push up food prices and add to inflationary pressure across the tourism-dependent hill town. Local traders said the increase of around ₹993 in the price of a 19-kg commercial LPG cylinder has placed a significant burden on businesses already struggling with rising operating costs. The revised price has reportedly reached ₹3,071 per cylinder, with some operators stating that the effective cost, including transport and logistics, is now even higher. Business owners say the increase comes at a time when demand from tourists is beginning to pick up, intensifying concerns about profitability.
The impact is not limited to commercial users alone. A 5-kg LPG cylinder, commonly used by smaller vendors and low-income households, has reportedly risen from ₹549 to ₹810—an increase of nearly 48 percent. This has affected daily wage workers, street vendors, and small food outlets, many of whom operate on thin margins and depend heavily on affordable fuel for cooking.
Restaurant and sweet shop owners in Shimla say the rising cost of LPG is already squeezing profit margins. Several traders noted that while food prices have not yet been revised, continued input cost inflation may force them to increase rates, potentially passing the burden onto both local customers and tourists. Some operators also pointed to delays and shortages in cylinder supply as an additional challenge affecting smooth business operations.
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The hospitality sector has echoed similar concerns, with hoteliers warning that the combined effect of higher fuel costs and supply issues could strain the industry further. Business representatives argue that the sector, which is heavily dependent on seasonal tourism, may struggle to absorb repeated price hikes without adjusting menu prices and room tariffs.
Political reactions have also emerged, with opposition leaders criticising the timing and rationale behind the increase, linking it to broader economic pressures. They have called for a rollback, arguing that the rising cost of essential fuels will ultimately be transferred to consumers and could trigger wider inflationary effects in the state’s food and services sector.
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