Yet another hike in commercial gas price hits restaurants, caterers hard

Veena. G. (BYLINE)

Saddled with the price rise of various items, hotel owners and caterers have been hit hard by another hike in commercial gas price by ₹102.5, taking the cost up per unit to ₹2,355.5.

Only last month, the Bruhat Bangalore Hotels’ Association (BBHA) decided to advise hoteliers to raise the prices across the board up to 10% in the backdrop of edible oil, cooking gas, coffee powder, and fuel becoming more expensive.

Chandrashekhar Hebbar, president, Karnataka Regional Hotels and Restaurants’ Federation, said that while there had been no proposal to increase the prices of items again yet, it could be decided by the individual management depending on their need.

P.C. Rao, president, BBHA, said the GST for commercial gas stands at 18%, while it is 5% for domestic gas, and there was a need to decrease this. “For the past five months, commercial gas price has increased by ₹600. The Government is increasing the prices of petrol, milk, electricity, and gas. We cannot increase the prices of food items like that; there’s a limit as to how much we can charge in restaurants. The increase in the price of commercial gas is an additional burden on us,” he said.

Restaurants are in a fix. Santosh, who manages Nammoora Thindi restaurant, said, “Gas prices have been increasing every month by hundreds. We have been trying to manage these expenses, but sometimes we increase the price of some food items by ₹3 or 5.” Narayana, manager of Krishna Aramane added, “We also have to keep in mind the competition when we decide to change the rates.” 

A hike in the rate of items could also mean losing customers. Small businesses that do not have a physical establishment suffer more as their shops do not carry a brand. Chandru earns his daily wage by selling fried snacks on the roadside at Muneshwaranagar. He buys commercial gas to run his business. “For one year now, the prices have been increasing frequently. I have been selling five vades for ₹5. If I increase the price to make up for it, then nobody will buy.”

Catering businesses too have been hit hard ever since the pandemic began. Now, with the increase in prices of all commodities and groceries that are necessary for them, they still have not recovered from the losses. Shankar, who runs JSN & Sons Catering, usually quotes a price for all that he sells. “Currently, we sell at about ₹300 per plate. I can increase it up to ₹320, but not more than that. Gas price is not in our hand, so we try to strike a balance by compromising on profit margins by 5 to 10%.”