Sambhajinagar hoteliers warn of closures as LPG prices surge, supply dries up

Chhatrapati Sambhajinagar: Hotels and restaurants in Chhatrapati Sambhajinagar are facing a looming crisis following a steep hike in commercial LPG prices and an acute supply shortage, prompting industry bodies to warn of possible closures and unavoidable increases in menu rates.The Aurangabad Hotel and Restaurant Owners' Association (ADHRA) said on Saturday that while LPG prices have risen sharply by almost 50% in recent weeks, actual supply from distributors has dropped by nearly 70%, creating what it termed an "unsustainable operating environment" for the hospitality sector."Our members are in a corner," ADHRA president Shivaji Patil said, adding that rising fuel costs and erratic supply have left hoteliers and restaurant operators with no option but to consider hiking menu prices. "We want to avoid burdening customers, but the situation is fast becoming unviable."Restaurant owners said LPG remains the primary cooking fuel and any disruption in price or availability directly affects daily operations. Small and mid-sized establishments, they said, are already struggling to maintain margins while recovering from earlier economic setbacks.According to the association, the crisis is compounded by inconsistent supply from dealers, forcing many establishments to rely on alternative arrangements at higher costs. "The mismatch between demand and supply has made it difficult to plan operations, with several eateries unsure if they can sustain even day-to-day services," an ADHRA member said.The association warned that the ripple effects of higher operating costs could extend beyond the hospitality sector and impact tourism, making the region less competitive due to higher food prices and reduced affordability. Stakeholders fear a dip in visitor numbers could also hit allied sectors dependent on tourism.ADHRA vice-president Kishor Shetty urged govt to intervene urgently to address both pricing and supply issues. "Unless the price hike is reviewed and supply stabilised, many businesses may be forced to shut down," Patil said.Industry representatives said they are monitoring the situation closely and may approach authorities collectively if relief measures are not announced soon, noting that the crisis comes at a particularly vulnerable time for a sector still struggling to recover.