Hoteliers, while welcoming the reduction, said it offers little relief to them as it recovers only a small part – about 14% – of the ₹1,356 increase they have absorbed since March.
| Photo Credit: AFP
Commercial LPG cylinder prices, which had climbed steadily since March and touched ₹3,021 in July, saw a ₹200 reduction on Saturday.Hoteliers, while welcoming the reduction, said it offers little relief to them as it recovers only a small part – about 14% – of the ₹1,356 increase they have absorbed since March.The steep rise by the Union government in prices was largely attributed to supply disruptions triggered by tensions in West Asia. In May alone, commercial LPG prices jumped by a record ₹993, followed by successive monthly increases till July since March.“Monthly fluctuations of around ₹100 are considered routine in the industry. Even this month’s ₹200 reduction is welcome, but it accounts for only about 14% of the additional cost that hotels have absorbed over the past five months,” said P.C. Rao of the Bruhat Bangalore Hotel Association.Hoteliers said the reduction would neither significantly benefit them nor offset the financial burden they had already borne.Venkatesh Murthy, who runs an eatery in Malleswaram, said many establishments not only paid the higher prices but, during the peak shortage, ended up paying nearly double to triple the official rate to procure cylinders. To cope with rising costs, many eateries trimmed their menus for nearly two months, limiting businesses to basic items while absorbing losses.“Menu prices had to be increased by at least ₹7 to ₹10, and customers constantly complained. At the same time, there was such an acute shortage that even after paying almost three times the price, cylinders were not readily available. A ₹200 reduction now cannot compensate for the losses we suffered then. Similar reductions over the next few months may help ease the burden,” he said.Another hotelier, Krishna G., noted that commercial LPG was only one of several input costs that had risen. “Palm oil prices and packaging material costs had also increased by nearly 40% during the same period. While the LPG price cut is a relief, the overall cost of running a hotel remains high, especially for small eateries,” he said.Hoteliers also pointed to the withdrawal of government discounts on bulk commercial LPG purchases. They said the Union government had suspended discounts of up to ₹150 per cylinder in March, citing the West Asia crisis, with an assurance that they would be restored after two months. Over four months later, the discounts are yet to be reinstated. Published - August 02, 2026 06:01 am IST
