Steep LPG hike leaves Bengaluru eateries with little choice

Bengaluru: A steep hike of Rs 990 in the price of 19-kg commercial LPG cylinders has sparked outrage among hoteliers across the city, who warn that the surge will sharply raise operating costs and inevitably push up food prices for consumers. Numerous restaurants in the city have increased the prices of most food items by Rs 10.

Many restaurateurs told DH that they had already been suffering because of recent price hikes and that many had to pay double the price and procure cylinders from the black market. The new price increase is a huge blow to the industry.

Shriram Sukumar, a manager at a restaurant in Uttarahalli, said, “We have increased the prices from today. Masala dosa is up by Rs 8. Coffee and tea remain the same because of our electrical set-up to prepare them. Lunch prices are also up by Rs 10.”

The manager said they had no other choice but to raise prices.

Naveen Kumar, a restaurant manager in Padmanabhnagar, said, “People come to our restaurant for dosa. We did not want to increase prices initially, so we set a time limit for when dosa would be available. But now, despite that, we will struggle to make even thin profit margins, so we have decided to raise the price. The dosa that was Rs 70 will now be Rs 80.”

Popular restaurant chains in South Bengaluru, known for offering good-quality food at reasonable prices, have also resorted to increasing prices.

While many customers said the impact would not matter much to them because they ate outside only on weekends, others said they had no choice but to eat out and that the price hike had made a significant difference to them.

Abhishek Gowda, a customer and IT employee, said, “I am from Channarayapatna. I live here for work. I stay in a small room where I cannot cook, so I have to depend on restaurants every day for all my meals. The price increase is significant and creates a hole in the pockets of people like us.”

Chaat shop owners have also decided to raise prices. Srinivas S, a chaat shop owner, said, “We have to keep the masala burning. People ask for chats to be hot, so we have to spend a lot on gas for it. So we have resorted to increasing prices. One plate of masala puri was Rs 35 in our shop; now it is Rs 45.”

Cut-off box - Hotels’ association seeks GST cut on LPG The Karnataka State Hotels’ Association on Saturday urged the government to immediately reduce the GST on 19-kg commercial LPG cylinders from 18 per cent to 5 per cent.

The demand comes in the wake of the price of commercial LPG being hiked by a steep Rs 993 per 19-kg cylinder on Friday marking the third straight monthly increase due to rising global energy prices linked to the West Asia conflict. G K Shetty president of the association said the hike of Rs 1308 in 60 days announced by the government through oil marketing companies is the sharpest increase in recent times.

Prices have risen from roughly Rs 1800-Rs 2000 in March to over Rs 3100 now he said with the total increase ranging from 50 per cent to 70 per cent within 60 days depending on the base city and timing. “If immediate corrective measures are not taken businesses will have no option but to pass on the increased costs to consumers making eating out more expensive and affecting overall demand” he said.