More than half of consumers say street vendors and restaurants hiked prices in the past week

The rising LPG prices and supply shortages are quickly pushing up food costs across India, affecting both street food vendors and restaurants. According to a survey by LocalCircles, “Over 1 in 2 consumers surveyed say both street food vendors and restaurants have increased food prices in the last one week.” The findings are based on responses from more than 38,000 consumers across 309 districts. 

The report highlights that 57% of consumers who visited restaurants or ordered food recently “confirmed that they have increased prices sizeably.” Among them, nearly 1 in 5 consumers said prices had risen by more than 25%, especially for online food orders. 

Street food, often seen as an affordable option for daily meals, has also become more expensive. The survey noted that “54% of consumers surveyed who visited street food vendors in the last one week confirmed they have increased prices by up to 25%.” 

Price rise on shortage of LPG cylinders 

The sharp rise in prices is largely linked to the ongoing shortage of commercial LPG cylinders. Vendors and restaurants are reportedly paying as much as ₹400 per kg for LPG in some cases. “Several restaurants and eateries have begun raising menu prices or adding temporary LPG surcharges to customer bills to offset rising fuel costs,” the report said. 

In some cities, restaurants have even started adding an “LPG revision fee” of ₹15 or more per bill. Since commercial establishments do not receive subsidised LPG, these higher costs are being passed directly to consumers. 

The shortage has also disrupted operations. In cities such as Bengaluru and Pune, restaurants have reduced kitchen activity, cut menus, and shortened working hours due to limited gas supply. Meanwhile, some vendors in places such as Ranchi and Bhopal have either scaled down or temporarily shut operations. 

To cope with the crisis, many small vendors are turning to alternatives such as firewood, charcoal, or induction stoves. However, the report notes that these are “often less efficient” and not viable long-term solutions. 

Impact is being felt most by daily wage earners 

The impact is being felt most by daily wage earners, students, and office-goers who depend on affordable food options. The report warns that “such an increase will directly impact their budget.” 

Calling for urgent action, the survey states, “Government will need to intervene here and make commercial LPG available to street food vendors and restaurants at regular prices if the food prices are to be contained.” 

With fuel supply disruptions linked partly to global energy tensions, the situation underlines how quickly everyday costs can rise when energy supply chains are hit.