Bengaluru LPG crisis: Rising costs may push paying guest accommodation rents by 5% if the shortage persists

The ongoing shortage of commercial LPG cylinders in Bengaluru is beginning to affect the city’s large paying guest (PG) accommodation sector, with operators warning that rents may increase if the situation continues. The crisis is largely linked to global geopolitical tensions and inflation, which have pushed up the cost of commercial LPG cylinders and disrupted their supply. As a result, PG owners are facing rising operational costs while struggling to maintain the quality of food services provided to tenants. Many PG accommodations rely heavily on LPG for preparing daily meals for residents, and the sudden shortage has forced operators to change their cooking practices and reduce food preparation. Several PGs have already run out of commercial LPG cylinders and are trying to manage the situation by limiting cooking activities that consume large amounts of gas. Breakfast items such as dosa, idli, puri, and chapati—popular staples in many PG kitchens—are increasingly being removed from menus because they require longer cooking times and higher LPG usage. Instead, many operators are shifting to simpler and quicker meals such as rice and sambar, which consume less fuel. According to Sukhi Seo of the Bengaluru PG Owners’ Association, several PG accommodations have already begun reducing both the variety and quantity of food they prepare. The problem extends beyond in-house cooking as well, since many PG operators depend on nearby hotels and eateries to supply meals through contracts. These vendors are also facing the same LPG supply challenges and rising input costs, further increasing the pressure on the PG ecosystem in the city.

The wider food service industry connected to the PG sector is also feeling the impact. According to PC Rao of the Bengaluru Hotel Association, more than 1,000 hotels and small restaurants in Bengaluru provide regular meal services to PG accommodations through contractual arrangements. With LPG shortages and price hikes affecting these establishments as well, the overall cost of food preparation and supply has increased significantly. This situation is particularly concerning in major IT corridors of the city, where PG housing is widely used by students, young professionals, and employees working in technology parks. Areas such as Whitefield, Koramangala, Electronic City, and Marathahalli host thousands of PG accommodations that cater to this population. Before the COVID-19 pandemic, Bengaluru had nearly 12,000 PG accommodations, but the number has since dropped to around 10,000, of which only about 3,000 are officially registered. Currently, rents in prime locations range from ₹9,000 to ₹10,000 per person for triple-sharing rooms, slightly higher for twin-sharing rooms, and over ₹15,000 for single occupancy depending on facilities. PG operators say they are reluctant to increase rents immediately because they fear losing tenants in a competitive market. However, if the LPG shortage and high prices persist, many may have no choice but to raise rents by at least 5 percent in order to cover rising operational costs such as fuel, food supplies, electricity, and labor. Industry representatives believe any rent increase will likely be gradual rather than sudden, allowing tenants time to adjust. At the same time, operators note that if the global situation improves and LPG supply stabilizes, rents could eventually return to normal levels. Until then, the ongoing LPG crisis remains a major concern for PG businesses and the thousands of residents who depend on affordable accommodation and food services in Bengaluru.