BENGALURU: Due to the increase in LPG prices, the Bengaluru Hotel Association has raised concerns over rising operational costs and the possibility of food price hikes in the coming weeks.
The price of a 19-kg commercial LPG cylinder has been increased by `115, while domestic cylinders have also seen a hike of Rs 60. The increase has been linked to rising global energy costs amid tensions in West Asia, raising concerns among businesses that depend heavily on LPG for daily operations.
“Hoteliers earlier received a discount of around Rs 150 on the maximum retail price (MRP) of commercial LPG cylinders. That was stopped from March 1, and now the MRP has been increased by Rs 115. So the total impact on us is around Rs 265 per cylinder,” said PC Rao, president of the Bengaluru Bruhat Hotels Association (BBHA).
Rao said the hike comes at a time when hotels are already facing rising costs of several key ingredients used in food preparation. According to him, cooking oil prices have increased by around Rs 15 to Rs 20 per kg. He added that coffee bean prices have also risen, while dry fruits, particularly cashews, widely used in gravies and sweets, have witnessed a price increase of nearly 20 to 25 per cent.
Apart from rising raw material costs, the industry is also concerned about other potential expenses. Rao pointed out that electricity tariffs are expected to increase by Rs 1 per unit, which could further raise operational costs for hotels and restaurants. Despite the increasing expenses, Rao said most hotels are not planning to immediately revise food prices.
“We are considering our customers and will wait for a few days to see how the situation develops. If it becomes unavoidable, some hotels may have to increase prices,” he said.
He added that the association plans to hold a meeting in the coming days to discuss the situation and possible steps. However, any decision to increase menu prices will be taken individually by hotel owners depending on their operational costs and business conditions.