After the increase in petrol and diesel prices announced by state-owned oil companies on Friday, food prices are expected to rise by 5-10 percent from next week.
Published: May 17, 2026 8:58 AM IST
New Delhi: Restaurants and food delivery apps in India are all set to increase the prices of food items by 5–10 percent starting next week. Owing to issues like LPG shortages, rising gas prices, and staff constraints, the food industry has now been further hit by the recent hike in petrol and diesel prices. Here, in this article, we have explained how this inflation will impact your plate and the restaurant industry.
The food industry is now preparing for another major setback amid the troubled LPG supply concerns. After the increase in petrol and diesel prices announced by state-owned oil companies on Friday, food prices are expected to rise by 5-10 percent from next week. It is important to note that restaurant businesses revise their prices around September every year. However, talking to Dainik Jagran, Sagar Daryani, Chairman of the National Restaurants Association of India (NRAI) and Co-founder of Wow! Momo said, “This year, we have no option but to increase prices from July 1.”
Why are restaurants and food chains increasing prices?
The main reason behind this is the rise in input costs. Petrol prices in Delhi have reached Rs 97.77 per litre and diesel Rs 90.67 per litre. This is the first major increase in nearly four years. In addition, LPG prices have surged by about 60 percent.
Vikrant Batra, Founder of Cafe Delhi Heights, says, “The rise in fuel prices will increase our transportation, packaging, raw material, and overall input costs; we have no option but to increase prices. The impact is such that even our staff members’ cost of living will go up.”
Meanwhile, a Rs 2 per litre hike in milk prices by Amul and Mother Dairy has further increased raw material costs.
Impact on online food delivery
According to a senior industry executive from a delivery company, rising logistics costs may lead to higher delivery fees for customers. Discounts could also be reduced, and minimum order values may increase.
Industry leaders also fear that platforms like Zomato and Swiggy may increase their commission or partner fees, further squeezing restaurant margins.
