LPG price hike: City hoteliers face the heat

NT Correspondent

Bengaluru: The skyrocketing price of commercial liquefied petroleum gas has put the city eateries in a bind. The longdrawn Covid-19 lockdowns have left them financially in dire straits, and now they have to make a tough call - whether to hike prices of food items, and risk losing customers, or continue absorbing losses.

State-owned oil marketing corporations Indian Oil, Bharat Petroleum and Hindustan Petroleum on Wednesday raised the price of the commercial LPG cylinder by Rs 100. With this hike, a 19-kg cylinder will cost 2,162.50 in Bengaluru. It may be recalled that exactly a month ago on November 1 the cylinder price was raised by Rs 266.

In Bengaluru, there are around 24,000 hotels and 12,000 or more cafés in the city and they are the primary consumers of these 19-kg cylinders.

Chandrika Sudheer Chennamsetty, a proprietor of a lodge, said, “We have already gone through a great deal of hardship because of Covid-19 and now this commercial LPG price hike will badly affect us. We will have to pass on the rise in cost to our customers, otherwise it will be difficult to pay my suppliers, employees and the rent. This could lead to closure of eateries and lodges in the city.”

The president of Bruhat Bangalore Hoteliers Association (BBHA), P.C. Rao said, “The price of a 19-kg commercial LPG cylinder has gone up from Rs 1,081 in May 2020 to Rs 2,162 now. Moreover, the prices of other commodities like edible oils have also increased. Big hotels can manage with a minimum hike but smaller establishments will have to increase it substantially. Otherwise, they will not make any profit.”

Ramya, who works in a private company, and regularly patronises eateries, said, “As middle class, it’s very difficult to afford the expensive commodities and food. Due to Covid -19, many people have lost their jobs or faced pay cuts. The government should take all this into consideration. Rampant price hikes will affect both the hotelier and the customer.”

(Contributed by M.S. Kavyashri and Shreya B.R.)