Hotels in city are back on LPG, not on prices!

After more than 80 days of disrupted LPG supply, Chennai’s cooking gas shortage has finally eased. Data from the Civil Supplies and Consumer Protection Department shows LPG availability has now overtaken bookings, signalling a return to normalcy.

But for diners across the city, one question remains: will restaurant bills return to pre-crisis levels? During the shortage, which began in March 2026 in the wake of the West Asia crisis, the spike in commercial LPG prices hit small eateries, tea stalls and PG kitchens the hardest. With commercial cylinders becoming scarce and often available only in the black market, many businesses had little choice but to pass on the additional cost to customers.The impact was visible across menus. At several roadside eateries, a plate of idlis that once cost ₹40 was priced at ₹50, while chicken fried rice went up from around ₹110 to ₹130. Tea and coffee, too, became costlier, with a cup rising from ₹10-12 to as much as ₹15-20. Some restaurants even introduced an “LPG surcharge” or “gas fee” of ₹15 to ₹30 on customer bills to offset soaring fuel costs. ‘Price will reduce if cylinder prices come down’ Restaurateurs say prices are unlikely to come down immediately.

A representative of Hotel Ananda says the recent price revision was not solely linked to the LPG shortage. “We did not increase the prices of meals, coffee or tea. The revision for other dishes was part of our annual increase to account for rising operational costs. So, prices are unlikely to be reduced.”For smaller establishments, the financial strain continues despite the improved supply. Karthik, state treasurer of the Tamil Nadu IT Hostel and PG Owners Welfare Association, says, “Supply is normal now, but the price of a commercial cylinder had gone up from around ₹1,900 to ₹3,300.

We were forced to increase food prices. If cylinder prices come down, we will consider reducing them.” LPG alone doesn’t determine what a dish costs, share hotelsMany of the city’s larger hotels state they chose to absorb the additional fuel costs rather than pass them on to customers. A spokesperson for The Leela Palace Chennai says the hotel maintained its menu prices throughout the shortage. “Our management decided to absorb the increased LPG costs instead of passing them on to guests.

Until last month, we faced supply issues, but we are now able to maintain adequate stock.

That said, the situation has not completely returned to normal,” they says.B Kumar, General Manager (Operations) of The Savera, says the hotel also managed to avoid revising menu prices and briefly turned to firewood to prepare some dishes when LPG supplies became erratic. “With LPG supplies improving, most of our cooking has shifted back to gas. While we didn’t increase menu prices during the shortage, if the cost of raw ingredients keeps rising, we might review prices in the future. LPG alone doesn’t determine what a dish costs,” he says.Written By: Praveen Kumar S