Hospitality Crisis: Thousands Unemployed as Soaring LPG Costs Shut Down Karnataka Eateries
Bengaluru: The Karnataka State Hotels Association (KSHA) has urgently appealed to the Central Government to slash the prices of commercial Liquefied Petroleum Gas (LPG) cylinders back to February levels, citing a severe crisis that has forced numerous restaurants and eateries to shut down, leaving thousands of workers unemployed.
Global Crude Drop Prompts Relief Call Hoteliers argue that with global crude oil prices stabilizing around $70 per barrel—mirroring rates seen earlier this year—the benefit must be passed on to the hospitality sector.
“Given the decline in global crude oil prices, the government must review commercial LPG rates and roll them back to February levels starting this July. This will provide essential relief to the struggling hotel industry,” stated G.K. Shetty, President of KSHA.
Supply Shocks and Skyrocketing Costs According to the association, a standard commercial LPG cylinder was officially priced around ₹1,800 in February, with hotels procuring them between ₹1,650 and ₹1,700 after distributor discounts. However, subsequent geopolitical tensions between the US and Iran severely disrupted the global gas supply chain. While supply gradually recovered—crawling back from initial deficits to 20%, 50%, and eventually 70% of normal capacity—the instability triggered massive price hikes.
Today, establishments are forced to pay a staggering ₹2,198 per cylinder. “Hotels and restaurants are currently paying nearly double the amount they were shelling out just a few months ago,” Shetty added, highlighting the unsustainable financial strain on the industry.
