BENGALURU: The latest increase of Rs 46 in commercial LPG cylinder prices, effective June 1, has added to the financial burden on hotels, restaurants and catering establishments across Bengaluru. However, industry representatives have said the hike will not immediately translate into higher food prices for customers.
Veerendra Kamath, Secretary of the Bangalore Hotels Association, said commercial LPG prices typically fluctuate at the beginning of every month, but the sustained increase in recent months has significantly impacted the hospitality sector.
“Commercial LPG prices usually fluctuate during the month beginning within the range of Rs 40. However, the consistent increase, especially the recent hike of over Rs 900 in recent months, has burdened our operations,” he said.
PC Rao, Honorary President of the association, said hotels are currently absorbing the additional costs and do not intend to revise menu prices. He noted that the last major menu price revision was undertaken only when LPG prices had risen by more than Rs 900.
Industry representatives pointed out that commercial LPG rates have been steadily climbing since the onset of the West Asia crisis. The price of a commercial cylinder has increased from around Rs 1,845 in March to Rs 3,199 at present, marking a cumulative rise of Rs 1,354 within a short span.
The sharp increase in fuel costs has contributed to rising operational expenses across the food and hospitality sector, with several establishments already facing pressure from higher input and utility costs. According to hotel operators, the sustained rise in LPG prices has also played a role in the increase in food prices over the past year.
To reduce dependence on LPG and cushion themselves against future price shocks, many hotels and restaurants have begun exploring alternative energy sources, including electric cooking systems and biofuel-based solutions. Stakeholders said diversification of energy sources may become increasingly important if fuel price volatility continues.