Struggling with rising prices for various items, hotel owners and caterers were hit hard by another rise in the price of commercial gas by ₹102.5, bringing the cost per unit to ₹2,355.5.
Just last month, the Bruhat Bangalore Hotels’ Association (BBHA) decided to advise hoteliers to raise prices across the board by up to 10% amid edible oil, cooking gas, coffee powder and fuel become more expensive.
Chandrashekhar Hebbar, chairman of the Karnataka Regional Hotels and Restaurants Federation, said that although there has not yet been a proposal to increase the prices of the items again, it could be decided by the individual management in according to his needs.
PC Rao, president of BBHA, said that the GST for commercial gas is 18%, while it is 5% for domestic gas, and that it was necessary to reduce it. “In the past five months, the price of commercial gas has increased by ₹600. The government is increasing the prices of petrol, milk, electricity and gas. We cannot raise food prices just like that; there is a limit to the amount we can charge at restaurants. The increase in the price of commercial gas is an additional burden for us,” he said.
Restaurants are in trouble. Santosh, who runs the Nammoora Thindi restaurant, said: “Gas prices have gone up by the hundreds every month. We have tried to manage these expenses, but sometimes we increase the price of certain food items by ₹3 or ₹5. Narayana, Krishna Aramane’s manager added, “We also have to keep the competition in mind when deciding on price changes.”
A rise in the item rate could also mean the loss of customers. Small businesses that do not have a physical location suffer more because their stores are unbranded. Chandru earns her daily wage by selling fried snacks on the roadside in Muneshwaranagar. He buys commercial gas to run his business. “Over the past year, prices have been rising frequently. I sold five vades for ₹5. If I raise the price to compensate, no one will buy.
Restaurant businesses have also been hit hard since the start of the pandemic. Now, with the prices of all the commodities and groceries they need rising, they still haven’t recovered from the losses. Shankar, who runs JSN & Sons Catering, usually quotes a price for everything he sells. “Currently we are selling around ₹300 per plate. I can increase it up to ₹320, but no more than that. The price of gas is not in our hands, so we try to find a balance by compromising profit margins by 5-10%. »
Customers, on the other hand, especially those who depend on hotels, say that if prices rise again, they have no choice but to pay.