Eating at Andhra Pradesh hotels is about to become costlier
What's the story
The Andhra Pradesh Star Hotels Association has announced plans to increase menu prices by up to 10%. The move comes after a major spike in commercial cooking gas cylinder costs, which has severely impacted the hospitality industry. The association's president R V Swamy said hotel owners are facing heavy losses due to rising input costs and have no option but to raise menu prices.
Price hike
Prices of commercial LPG cylinders hiked by ₹993
The Indian government has hiked the price of 19kg commercial LPG cylinders by ₹993. In Hyderabad, the cost per cylinder now stands at nearly ₹3,315. The steep increase is attributed to rising global energy prices amid the West Asia conflict. Swamy said commercial gas prices have increased cumulatively by nearly ₹1,303 in just three months.
Broader impact
PNG users also affected
Swamy highlighted that not just LPG users but those using Piped Natural Gas (PNG) are also bearing the brunt of global energy market fluctuations. He said gas is the main fuel for the hospitality sector and its skyrocketing prices are making daily operations unsustainable. Apart from fuel costs, Swamy said the industry is also grappling with rising costs of essential commodities like edible oils and provisions.
Challenges
Swamy appeals for government intervention
Swamy pointed out that the cost of pulses and vegetables has hit an all-time high, further worsened by expensive packaging materials. He said the cost of materials for takeaway and delivery services has also been rising steadily. The association's president appealed to the government for immediate intervention in the form of tax concessions or subsidies to save the hospitality sector from these financial strains.