The Karnataka State Hotels Association (KSHA) on Saturday urged the government to cut the GST on 19-kg commercial LPG cylinders from 18% to 5%, citing an unprecedented surge in prices that is straining the hospitality sector.
The appeal follows a sharp hike of Rs 993 per cylinder on Friday — the steepest increase so far — marking the third consecutive monthly rise. The spike has been attributed to escalating global energy prices linked to the ongoing conflict in West Asia.
In a statement, KSHA President G K Shetty said the cumulative increase of Rs 1,308 over the past 60 days is among the sharpest seen in recent years. Commercial LPG prices, which hovered between Rs 1,800 and Rs 2,000 in March, have now crossed Rs 3,100 in many cities — a jump of 50% to 70%, depending on location and timing.
“If immediate corrective measures are not taken, businesses will have no option but to pass on the increased costs to consumers,” Shetty warned, adding that higher menu prices could dampen demand and make eating out less affordable.
He noted that the hospitality industry, still recovering from previous disruptions, is now facing a fresh crisis driven by global supply chain challenges and fuel shortages. The surge in LPG prices has significantly raised operating costs for hotels and restaurants across the state.
Shetty also pointed to mounting financial pressures from local levies, including garbage collection charges in Bengaluru, along with other regulatory expenses. These combined burdens have already forced several small and medium establishments to shut down, while many others are struggling to stay afloat.
The association said reducing GST on commercial LPG would offer immediate relief, help stabilise prices, and limit the cascading impact of rising costs across the sector.
Calling for urgent intervention, KSHA urged both state and central governments to act swiftly. “The hospitality industry is a major contributor to employment and economic activity. Supporting it during such challenging times is essential for its survival and long-term sustainability,” Shetty said.
The association reiterated its willingness to work with policymakers but stressed that timely action is critical to prevent further closures and economic distress in the sector.
(With inputs from PTI)
