Bengaluru hotels welcome ₹200 LPG cut, say losses persist

Mixed relief for hoteliers

Bengaluru's hotel and restaurant owners have welcomed the recent ₹200 cut in LPG cylinder prices, calling it a small but meaningful step. The reduction, announced by the central government, lowers the cost of a commercial cylinder, which is a major expense for the city's vast network of eateries.

However, many say the relief is far from enough. Owners of small hotels, darshinis, and roadside stalls argue that the savings are quickly eaten up by rising prices of vegetables, cooking oil, and rent. The net effect, they claim, is that their losses remain largely unchanged.

Costs that don't go down

For a typical small hotel in Bengaluru, LPG accounts for a significant chunk of monthly expenses. A ₹200 reduction on each cylinder, while appreciated, amounts to a few thousand rupees a month at best. Meanwhile, the cost of other inputs has climbed steadily over the past year.

"We are grateful for the cut, but it is not enough," said a restaurant owner in Malleshwaram. "Our electricity bill, staff salaries, and even the price of rice and dal have all gone up. The LPG saving is like a drop in the ocean."

The sentiment is echoed across the city, from upscale restaurants in Indiranagar to modest eateries in Whitefield. Many operators say they have not increased menu prices to avoid losing customers, which further squeezes their margins.

Industry calls for more support

Industry bodies representing hotels and restaurants have urged the government to consider a deeper subsidy or a reduction in GST on food items. They argue that the hospitality sector, still recovering from the pandemic's impact, needs sustained support to stay afloat.

"The LPG cut is a welcome move, but the government must look at the bigger picture," said a representative of a local hotel association. "We need relief on multiple fronts, not just one input cost."

Some owners have also suggested that a direct subsidy to commercial kitchens, based on their monthly usage, would be more effective than a flat price cut. Others have called for a cap on the prices of essential commodities that hotels rely on.

Small eateries hit hardest

The impact is most acute on small, family-run establishments that operate on razor-thin margins. For them, even a ₹200 saving per cylinder is a critical buffer, but it does not cover the gap left by other rising costs.

"We use about 15 cylinders a month," said a darshini owner in Jayanagar. "That is a saving of ₹3,000, but our monthly losses are much higher. We are holding on, but it is tough."

Many such owners are wary of passing on the increased costs to customers, fearing a drop in footfall. They are instead absorbing the losses, hoping for better times ahead.

What happens next

The government has not yet indicated whether further price revisions are on the cards. Hoteliers are now watching for the next policy announcement, particularly the upcoming budget, where they hope for more targeted relief.

For now, Bengaluru's hotel industry remains cautiously optimistic. The LPG price cut is a positive signal, but the ground reality is that many establishments are still struggling to break even. The coming months will show whether this small measure translates into sustained relief or merely a temporary pause in their mounting expenses.