Commercial LPG effect: Hotels plan price hike from Nov 15

TN Hotels Association president M Venkedasubbu speaking to DT Next revealed, “it was impossible to continue business without increasing prices of all food items due to the recent hike in LPG cylinder prices.”

Stating that no reason was given for the price increase of Rs 230 per 19 kg commercial cylinder, he sought the help of both state and Centre to reduce the prices of fuel and LPG if the present price level was to be maintained.

Elaborating, he said, “the continued hike in the prices of fuel has resulted in prices of all essential commodities shooting up due to increased transport cost. When this is the case we wonder why the Union government’s GST council has different rates for domestic and commercial cylinders. While GST on a domestic cylinder is 5 per cent it is 18 per cent for commercial cylinders.”

“Why would anybody pay 13% extra for eating out when the additional price will be put on the consumer’s heads?” a Vellore based hotelier asked.

Hotelier S Udayashanker of the Vellore based Durga Bhavan group said, “we have no option other than hiking the prices of all food items from November 15. Decision to increase rates is undertaken by individual hoteliers based on their expenses, including building rent, power cost, payment to workers, salaries and other consumables.”