Star hotels urge government to ensure uninterrupted LPG supply to hospitality sector

Andhra Pradesh Star Hotels’ Association expressed concern over the significant cost pressures due to the sharp increase in global fuel prices.

In a press statement on Sunday (April 5, 2026), the association said that the rise in energy costs has directly affected logistics, power generation, procurement and overall service delivery. This led to a noticeable increase in operating expenses across star hotels, it said.

Due to the irregular supply and rising costs of LPG, several establishments are experiencing delays in cylinder refills, impacting kitchen efficiency and food production. This has compelled hotels to explore alternative fuel arrangements, which are more expensive.

The surge in input costs, including cooking oil, transportation, and essential commodities, has necessitated menu price revisions in the range of 20%–30%. While star hotels are making efforts to absorb part of the cost increase to maintain customer satisfaction and service standards, the sustained rise in expenses is placing considerable strain on margins, they stated.

In response to the situation, hotels have initiated optimising kitchen processes, streamlining menus, and improving energy efficiency. While the star hotel sector continues to maintain its workforce, prolonged uncertainty and sustained cost pressures may pose challenges for staffing and workforce stability in the future, they said in the statement.

The association urged the government to ensure uninterrupted supply of LPG to the hospitality industry and consider appropriate support measures to stabilise input costs during this period. Timely intervention will help sustain operations and protect employment within the sector, they said.