Hotel Owners in DK, Udupi Hike Food Prices Amid LPG Crisis

Mangalore Today News Network

Mangaluru, May 3, 2026: Hotel owners in Dakshina Kannada and Udupi districts have decided to increase food prices by 10% to 15% following a steep rise in commercial LPG prices and supply shortages.

The Mangaluru Hotel Owners’ Association has approved a 15% hike in food prices after commercial LPG cylinder prices reportedly increased by Rs 993, severely affecting the hospitality sector.

Hotel owners said they were left with no option as rising fuel costs, along with higher prices of vegetables, cooking oil and spices, have pushed operational expenses beyond manageable levels. Several hoteliers said they had avoided increasing prices for the past two months despite mounting losses.

Small and medium-sized hotels, canteens and roadside fast-food outlets are among the worst affected. Some hoteliers warned that if LPG prices do not come down within the next 10 days, a few establishments may be forced to shut operations.

The crisis has also triggered a black market for commercial LPG cylinders, with traders alleging that cylinders are being sold for more than Rs 6,000 due to artificial scarcity.

Hotel owners have urged the district administration and police to take strict action against illegal hoarding and ensure uninterrupted supply through authorised dealers.

In Udupi, hotel owners are expected to take a final decision on price revisions next week after discussions with the state association. They said a major portion of their daily income is now being spent on gas expenses, affecting their ability to pay staff salaries.

Meanwhile, residents have also complained of delays in domestic LPG delivery, with some consumers reportedly waiting up to 15 days after booking cylinders.