Intro
Hoteliers expressed concern that government discounts of up to ₹150 per commercial LPG cylinder are yet to be restored.
CH NEWS
BENGALURU
Hotels and restaurants in Bengaluru have welcomed the Centre’s ₹200 reduction in the price of commercial LPG cylinders, but say the relief is inadequate after months of steep price hikes and supply shortages that severely affected the hospitality sector.
Commercial LPG cylinder prices, which had risen steadily since March and touched ₹3,021 in July, were reduced by ₹200 on Saturday. However, hoteliers said the cut recovers only a fraction of the ₹1,356 increase they have absorbed over the past five months.
P.C. Rao of the Bruhat Bangalore Hotel Association said monthly fluctuations of around ₹100 are common in the industry, but the latest reduction accounts for only about 14 per cent of the additional costs borne by hotels since March.
Hoteliers said the sharp increase in LPG prices, largely attributed to supply disruptions caused by tensions in West Asia, had significantly raised operating expenses. During the peak shortage, several establishments reportedly paid nearly two to three times the official price to procure cylinders.
Venkatesh Murthy, who runs an eatery in Malleswaram, said many restaurants were forced to reduce menu options and increase food prices by ₹7 to ₹10 to offset rising costs. Despite paying exorbitant prices, obtaining LPG cylinders remained difficult during the supply crunch, he added.
Another hotelier, Krishna G., said LPG was only one of several inputs that had become more expensive. Prices of palm oil and packaging materials had also increased by nearly 40 per cent, adding further pressure on small eateries. Hoteliers also expressed disappointment over the continued suspension of government discounts of up to ₹150 per commercial LPG cylinder. The discounts were withdrawn in March due to the West Asia crisis, with assurances they would be restored within two months. More than four months later, the benefit has not been reinstated, leaving the industry hoping for further price reductions in the coming months.
