Madurai: Hotels and small restaurants are struggling to keep afloat above the Rs 368 rise in the price of a 19kg commercial LPG bottle made by oil companies in one month. The cylinder now costs Rs 2,235 after the price was increased by Rs 268 in the first week of November and by Rs 100 a few days ago.
âThis is the same LPG for a 14.2 kg domestic cylinder which is available for around Rs 900 and at a lower price for automobiles as well. There is no such disparity in the price of diesel for vehicles. private, public transport vehicles and commercial freight carriers, “said KL Kumar, president of the Madurai Hotel Association.” We bought a 19kg bottle for Rs 1,333 in November 2019, which remained the same in November 2020 (Rs 1,337), but rose to 1,438 in January and to 2,235 now, âadded the co-secretary of the Tamil Nadu Hotels Association.
Kumar will shell out Rs 1.84 lakh more for bottles at its 15 hotels, while small restaurants and tea stands like the one owned by K Senthil in Anna Nagar need two bottles every one or two days. âWe make tea and snacks and sell at a much lower price. We cannot afford to lose consumers by raising its price by one rupee a cup, âhe said. He said he would spend Rs 16,500 more on LPG starting this month. Hoteliers said some small restaurants could be pressured into illegally using domestic LPG cylinders.
Tamil Nadu Chamber of Commerce and Industry President N Jegatheesan said the hike is another blow to the hospitality industry which is hit by the pandemic and rising commodity prices due of rising diesel prices. âIn the past two months, the price of crude oil has fallen by about $ 14 a barrel and the price of other petroleum products has fallen slightly. We are calling on the oil companies and the Union government to withdraw the price hike on commercial gas cylinders and reduce the GST from 18% to 5% for the benefit of all walks of life, âhe added. .