PANAJI
A sharp Rs 993 hike in commercial LPG prices has once again placed Goa’s hospitality sector under strain, with industry stakeholders warning that the burden, though not immediate, will inevitably be passed on to consumers. Establishments transitioning to piped natural gas may however be able to cushion or avoid the impact.
Restaurant owners and tourism bodies said the timing of the increase, just ahead of the off-season dip in tourist arrivals in Goa, may delay price revisions, but not prevent them.
President of the Goa Hotel and Restaurant Association, Gaurish Dhond, described the situation as “unavoidable,” while signalling that menu prices will eventually rise. “The restaurants and eateries are certain to raise prices following the hike. However, the increase may not be immediate, as the sector is approaching the off-season. The impact is likely to be reflected from September onwards,” he said.
Echoing similar concerns, Travel and Tourism Association of Goa (TTAG) president Jack Sukhija said the industry has little room to absorb the cost escalation.
“The price hike will inevitably have to be passed on to consumers, though the impact is unlikely to be immediate,” he said.
At the ground level, several small eateries are contemplating initiating a marginal price increase, citing both the fresh hike and an ongoing rise in operational costs linked to LPG shortages and reliance on costlier private suppliers.
A prominent eatery in Panaji said it had already raised prices of everyday items after the LPG shortage in March.
“We had increased the prices of light snacks such as vada-pav, samosas, buns, etc by Rs 5, earlier, but that was out of compulsion. Now, too, we might have to raise prices, albeit marginally, as the current hike itself is significant,” a representative said.
A Udupi restaurant in the city confirmed that revisions are being considered, though cautiously. “The price hike is on the cards, but we will ensure it does not burn a hole in customers’ pockets,” a staff member said.
Some establishments are exploring alternatives to cushion the impact. A South Indian restaurant, Sheetal Pure Veg, said it has already begun transitioning to PNG.
“Currently, we are using LPG and induction, but we plan to switch to piped gas soon, which would mean no additional burden on consumers,” its representative said.
Others, such as Ritz Classic, which rely on a mix of LPG and induction, said they are yet to take a call on revising menu prices. “Our management will take a call,” one of the staff members said.
The latest price hike comes against the backdrop of recent supply disruptions, particularly during March-April, when LPG availability was hit due to global shipping constraints around the Strait of Hormuz.
With recurring supply instability exposing vulnerabilities, the State government has stepped up its push for a transition to PNG. At a high-level meeting by the Tourism Department, at the end of March, the officials urged restaurants, beach shacks and allied businesses to expedite the shift.
Industry stakeholders flagged that erratic LPG supply is already affecting day-to-day operations across Goa’s tourism belt, raising concerns ahead of key travel periods. Officials, however, made it clear that the long-term solution lies in moving away from dependence on LPG.
