Over 1 in 2 consumers surveyed say both street food vendors and restaurants have increased food prices in the last one week

March 17, 2026, New Delhi: For the average daily wage worker, auto, taxi and truck drivers, officegoers, students, and even many middle-class families, one of the greatest conveniences and small pleasures of urban life is eating affordable street food from hawkers and wayside eateries, often accompanied by a cup of strong chai. However, this simple and inexpensive indulgence is becoming costlier as an ongoing LPG cylinder shortage affects several Indian cities.

Roadside eateries, small food vendors and even restaurants are increasingly asking customers to temporarily bear part of the cooking fuel cost. Several restaurants and eateries have begun raising menu prices or adding temporary LPG surcharges to customer bills to offset rising fuel costs and irregular supply of commercial cylinders.

In some cases, restaurants have reportedly started adding INR 15 or more as “LPG revision fee” to each bill to recover additional cooking fuel expenses. In cities facing severe shortages, eateries have also increased the prices of popular food items, as they are sometimes forced to buy LPG cylinders at higher rates or even from the black market. Since commercial establishments do not receive subsidised LPG like households, these higher costs are often passed on to customers through price hikes or surcharges, making eating out slightly more expensive.

The crisis, partly linked to global energy supply disruptions and tensions in West Asia, has created a ripple effect on India’s informal food economy, impacting not only millions of people who depend on inexpensive street food for daily meals but also the income of hawkers and eateries.

Many street vendors and small eateries operate using small commercial LPG cylinders that require frequent refilling. Due to the shortage, vendors in cities such as Ranchi and Bhopal have reduced their operations or temporarily shut down their stalls. Some vendors say their business has dropped significantly as they struggle to secure gas cylinders needed for cooking.

Restaurants and small hotels are also facing operational challenges. In cities including Bengaluru and Pune, eateries are reported to have reduced kitchen activity, menu cuts, and shorter working hours due to limited LPG supply. To conserve fuel, some restaurants are removing dishes that require longer cooking times or deep frying, such as kebabs and snacks.

At the same time, many wayside vendors and small eateries, which provide home delivery service and serve food, have begun switching to alternative fuels to keep their businesses running. Some are using firewood, charcoal, or coal stoves, while others have turned to kerosene burners or electric induction stoves where electricity supply allows. However, these alternatives are often less efficient, produce more smoke, or increase operating costs, making them difficult long-term solutions.

As eateries reduce operations or increase prices to cope with rising fuel costs, access to inexpensive food is becoming more limited for many people. The ongoing LPG cylinder shortage across several Indian cities has thus highlighted how disruptions in fuel supply can quickly affect both livelihoods and everyday food affordability in urban India.

LocalCircles has conducted a survey to understand the impact of the LPG shortage on the food prices of street food vendors and restaurants. The survey received over 38,000 responses from household consumers located in 309 districts of India. 61% respondents were men while 39% respondents were women. 44% of respondents were from tier 1, 27% from tier 2 and 29% of respondents were from tier 3, 4 & 5 districts.

57% of consumers surveyed who visited restaurants or ordered food in the last one week confirmed that they have increased prices sizeably

The survey first asked consumers, “In the last one week, how have restaurant food prices (dine in or home delivery) changed in your area?” Out of 19, 328 consumers who responded to the question 43% indicated that there is “no change” in the restaurant prices they visited or go food from; 25% of respondents indicated that the prices have “increased by up to 10%”; 12% of respondents indicated that prices have “increased by 10-25%”; 12% of respondents indicated that the prices have “increased by 25-50%”; 8% of respondents indicated that the prices have “increased by over 50%”. To sum up, 57% of consumers surveyed who visited restaurants or ordered food in the last one week confirmed that they have increased prices sizeably. 1 in 5 consumers said they experienced a price increase of over 25% with many of them who ordered food online highlighting a higher increase in the community discussions.

54% of consumers surveyed who visited street food vendors in the last one week confirmed they have increased prices by up to 25%

As social media reports have indicated that the increase in prices have been from marginal hike to large jumps, the survey asked consumers, “In the last one week, how have street vendor food prices changed in your area?” Out of 19,322 consumers who responded to the question, 33% indicated “no change”; 7% of respondents indicated, “increased by up to 10%”; 47% of respondents indicated that it had “increased by n1-25%”; and 13% of respondents did not give a clear answer. To sum up, 54% of consumers surveyed who visited street food vendors in the last one week confirmed they have increased prices by up to 25%

In summary, the survey shows that 57% of consumers surveyed who visited restaurants or ordered food in the last one week confirmed that they have increased prices significantly with the highest increases observed for orders placed online. What is more troubling is that 54% of consumers surveyed who visited street food vendors in the last one week confirmed that the prices have increased by up to 25%, which is substantial.

Many of the daily wage earners have their meals at these food joints and such an increase will directly impact their budget. Feedback from consumers about the price increase points to many of these vendors and even restaurants buying LPG through the black market in some cases as high as 400 rupees a kilogram and that is what is driving the impact on food prices.

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. Alternate being continued high prices or many shutting temporarily till the situation normalizes.