Rise in cost of commercial LPG cylinder hits hotel industry in Tiruchi

TIRUCHI

Hotels and small eateries in the city feel the pinch as oil marketing companies have steeply increased the price of commercial Liquefied Petroleum Gas (LPG) cylinders by ₹351 effective from March 1. In Tiruchi, a 19 kg commercial LPG costs ₹2,326.50 after the hike.

Hoteliers say a mid-size restaurant uses around four 19 kg commercial LPG cylinders a day, while bigger establishments may use over 10 a day. They claim that the increase is a major setback for the industry.

This, along with the rising price of essential commodities, is eating into their profit margins. Smaller eateries, reeling under the impact of the rising cost of essential commodities, do not have much choice but to increase the price of some items.

Many have increased the price of a few items such as snacks, tea and coffee, while leaving the rest of the menu untouched. Hyderabadi Biryani, a popular joint in Edamalaipattipudur, has increased the price of chicken biryani from ₹120 to ₹150 per plate. “We are struggling with rising costs,” says Kader Ahmed, owner of the outlet.

According to S. Sundaresan, secretary, Tiruchi Hotel Owners Association, the hotel industry has been struck hard by a series of price hikes in recent months, in addition to increase in the cost of vegetables and cooking oil. “Due to the burden of rising costs, a few restaurants have raised their menu prices, and more are likely to do so this month.”

An owner of a mid-size restaurant in Cantonment says that since the price of essential items fluctuates every day, hotels cannot determine menu prices accordingly. “Building rents are getting higher and although the footfalls have picked up after the lockdown we are still struggling with the inflating cost of essential items.”

Tea shops like the one owned by R. Kumaran near Central Bus Stand require two cylinders every one or two days. “We would rather have this eat into our little profit than pass on the entire burden to customers as we cannot afford to lose them. However, if the price keeps increasing, we will be forced to increase our rates,” he said.