PANJIM/MARGAO/PONDA: Goa’s hospitality sector has been dealt a historic blow as commercial LPG prices surged by an unprecedented Rs 993, pushing the cost of a 19 kg cylinder past the Rs 3,000 mark to Rs 3,149. Already reeling from supply constraints and high operational costs triggered by the ongoing Iran war, hoteliers and restaurateurs are facing a severe crisis following the record-breaking single-month hike.
While the steep rise has triggered strong reactions from industry bodies in several parts of the country, stakeholders in Goa say the impact is already being felt on the ground.
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Deepak Pai, President of the South Goa Hoteliers Association, said restaurants and hotels are facing a dual challenge of rising costs and inconsistent supply. He pointed out that several establishments have been forced to scale down operations, with some shutting early, limiting menu offerings, or struggling to maintain service speed.
Other restaurateurs said the disruptions are beginning to reflect in customer experience as well, with delays in service, staffing challenges and reduced operating hours affecting day-to-day business. Many said they have been forced to operate at partial capacity while trying to absorb rising input costs.
Pai said operators have already attempted to adjust menu pricing and cut overheads, but the situation has become increasingly difficult due to unreliable supply. Despite meetings with authorities and gas suppliers, cylinder availability remains inconsistent, he said.
He added that many establishments have been compelled to explore alternatives such as firewood, diesel-based bhattis and induction cooking, though these are neither efficient nor sustainable for regular operations.
Restaurateurs also pointed to a growing dependence on the black market, where cylinders are often procured at double or even triple the official price. Several said that because they have already been forced to rely on such high-cost sourcing due to supply shortages, the latest price hike, while significant, does not come as a shock in isolation but further erodes margins that are already under severe strain.
Pai also questioned how cylinders continue to be available in the informal market even as authorised supply remains constrained, pointing to a disconnect between shortages at official outlets and availability through unofficial channels.
The emerging situation has prompted industry bodies to begin assessing a coordinated response. Travel and Tourism Association of Goa (TTAG) President Jack Sukhija said the latest hike would inevitably push up operational costs across the sector.
TTAG Vice President (North Goa) Akash Madgavkar said that while businesses have been coping with rising prices so far, the latest increase has added fresh pressure.
Madgavkar said the industry is yet to arrive at a consensus on its response, with a meeting scheduled next week to gauge the overall impact of the hike and ongoing supply concerns before deciding on further steps.
The impact is also being felt among shack operators. Cruz Cardozo, President of the Goa Shack Owners Association, said the issue has been taken up with the Chief Minister as well as gas companies, pointing out that supply, which was earlier steady, has now become irregular and inadequate.
Cardozo said shack operators earlier had relatively easier access to LPG, with distributors ensuring regular supply, but the situation has now changed significantly. Even when operators approach agencies directly, securing cylinders has become difficult, and the quantities being supplied are far below actual requirements, he said.
He added that several shack operators are struggling to sustain operations, with some scaling down menus and others forced to shut early. Unlike larger establishments, many shacks have limited alternatives to LPG and remain heavily dependent on regular cylinder supply. A recent dip in tourist inflow in recent weeks has further compounded the pressure on the sector.
The impact of the LPG shortage appears to be spreading beyond the hospitality sector, with reports indicating that migrant workers reliant on 5-kg cylinders are struggling to access cooking fuel, which remains their primary and most affordable option. The disruption has followed constraints in the availability of smaller cylinders at the retail level, making it difficult for workers to manage daily cooking needs.
Industry sources have begun flagging emerging manpower shortages, with some workers leaving or delaying their return amid uncertainty over fuel availability. Human resource agencies have indicated increasing difficulty in sourcing labour, with workers unwilling to resume work unless assured of stable access to essential fuel.
The situation is starting to reflect in sectors such as manufacturing and pharmaceuticals, where operations are already facing strain due to workforce gaps. The ongoing LPG supply disruption is now being seen as a wider economic concern, with fears that prolonged shortages could impact productivity and slow down industrial activity in the State.
Akshay Borkar, owner of Celebrations restaurant, Panjim, said hoteliers are facing a double whammy of high cylinder cost and irregular supply.
“The supply has been massively affected. The prices have gone up again, this time by almost Rs 1,000, which is the highest increase ever. On the first day of every month, the price changes, either it reduces or increases, but mostly it rises and doesn’t reduce,” Borkar said.
He said that due to the fuel crisis, his restaurant has discontinued some of its popular takeaway items from the menu.
“We do a lot of business online through the food delivery aggregators like Zomato and Swiggy. But we have now discontinued many items, like soup, French fries and others. This has adversely affected our business,” he said.
He said that there would be a further increase in the cost of food items in the near future due to this spurt in gas cylinder cost.
“We cannot increase prices suddenly, but we have to assess the situation and eventually increase them. This will further hit our business as customer flow is bound to plummet,” Borkar said.
Proprietor of Mallu Republic, Dennis John Joseph said the government fixed price was Rs 2,150 last month. In March-April it was Rs 1,850 and now it has increased to Rs 3,149 on Friday.
“The cost of food items has already increased because even though the government fixed price of a 10 kg commercial LPG cylinder is Rs 2,100, the supply has been erratic. So, the restaurateurs in Goa have been forced to buy from the private agencies, who are charging between Rs 5,000 and Rs 6,000 per cylinder,” Joseph said.
Now the latest increase in cylinder cost will burden the eateries and consumers alike across Goa.
“Apart from the high fuel cost, we also have to deal with high rent. Many of the food joints in the coastal belt have already shut down due to the fall in tourist numbers. Along with us, even the wholesale vegetable and grocery vendors have been adversely affected; almost 80% of their business is down,” he said.
Joseph added that the online business through food aggregators has also been hit as their commissions have gone up and many of the delivery boys, who are mainly migrants, went to their homes to vote during the recent Assembly elections in West Bengal and Assam and haven’t returned.
“Due to the shortage of delivery boys, our online business has also been affected,” he added.
Ramprakash G, proprietor of the biryani joint House of Hyderabad, noted that raw materials have become costly along with the spike in LPG costs.
“There has been a rise in almost every ingredient used for preparing biryani. The basmati rice cost has increased to Rs 100 per kg from Rs 90, vegetables and other raw materials have become dearer by 15-20 per cent. Obviously the burden of inflation will be passed on to the customer,” he said.
Meanwhile, small hoteliers and fast-food operators in the internal villages of Ponda have expressed significant concern following the Rs 993 price hike for 19 kg commercial gas cylinders.
Local business owners, including those serving bhaji pav, tea, and ros omelette, noted that the cost per cylinder has risen from approximately Rs 2,030 to nearly Rs 3,000.
Anita Naik of Ponda stated that this sharp increase makes it difficult to maintain existing food prices, while Vandesh Sawant highlighted that prices have nearly doubled from the Rs 1,700 rate seen only a few months ago.
Operators emphasised that while they are reluctant to lose customers, they may have no choice but to pass these costs on to consumers to avoid business losses. They have called on the government to reconsider this decision and lower prices to support small businesses and their patrons.
