The Andhra Pradesh Star Hotels Association has expressed concern over significant cost pressures due to the sharp rise in global fuel prices.
In a press statement on Sunday (April 5, 2026), the association said the increase in energy costs directly affected logistics, power generation, procurement and overall service delivery. This has led to a noticeable increase in operating costs across star hotels, the company said.
Due to irregular supply and rising cost of LPG, several establishments are experiencing delays in refilling cylinders, impacting kitchen efficiency and food production. This has prompted hotels to explore alternative fuels that are more expensive.
The increase in input costs, including cooking oil, transport and basic commodities, has necessitated menu price revisions in the range of 20-30%. While star hotels are trying to absorb some of the cost increase to maintain customer satisfaction and service standards, sustained cost growth is putting significant pressure on margins, they said.
In response to the situation, hotels began optimizing kitchen processes, streamlining menus and improving energy efficiency. While the star hotel sector continues to maintain its workforce, long-term uncertainty and continued cost pressures may pose challenges to staffing and workforce stability going forward, they said in a statement.
The association urged the government to ensure uninterrupted supply of LPG to the hospitality industry and consider appropriate support measures to stabilize input costs during this period. Early intervention will help sustain operations and protect employment in the sector, they said.
Published – 05 Apr 2026 21:01 IST
