BENGALURU: Get ready to pay more for your meals as hotels across Bengaluru are contemplating revising food prices following a steep Rs 993 hike in commercial LPG rates.
The increase has pushed the price of a commercial LPG cylinder to Rs 3,152 from Rs 2,162 earlier this month and Rs 1,844 just a few months ago, triggering a concern among hotel owners.
PC Rao, president, Bruhat Bangalore Hotels Association, said the LPG price hike would hit small and medium hotel owners the hardest, as they operate on narrow profit margins and largely serve daily wage workers, auto drivers and middle-class customers.
Unlike star hotels, which may have greater capacity to absorb rising operational costs, smaller eateries and roadside hotels have little room to manage such sudden increases. He said the steep rise in fuel costs has placed them under immense financial strain, making food price revision inevitable.
Rao said the hotel industry has built a reputation in Bengaluru for serving hygienic and affordable food. But maintaining that standard is becoming increasingly difficult with rising LPG and electricity costs. The burden would eventually be passed on to customers, as hotels cannot continue absorbing the losses, he warned.
Left with no choice, say hotel owners
The association urged the central government to reduce GST on commercial LPG from 18% to 5%, similar to domestic LPG, and rationalise prices to provide relief to the sector. Rao said hotels are also exploring alternatives to LPG, like PNG, firewood and biogas to reduce dependence.
Chandrashekhar Hebbar, honorary president, Karnataka State Hotel Association, said the LPG price increase has left hotels with little choice but to revise their prices. He, however, stressed that the burden cannot be entirely passed onto customers, especially when many depend on hotels for affordable meals every day.
Staple food items like idly, vada, dosa, rice and sambar, widely consumed by the common people, should not see steep price hikes. Hotels are now assessing which menu item prices can be revised while ensuring essential food remains affordable, he added.
Another hotelier said many establishments are stocking up on firewood and using it as an alternative to cope with the rising LPG costs.