Karnataka Hotels Body Seeks GST Cut on Commercial LPG After Sharp Price Surge
Industry warns of rising food costs and business strain as LPG prices jump steeply
The Karnataka State Hotels Association has urged the government to reduce GST on 19 kg commercial LPG cylinders from 18 per cent to 5 per cent, citing a steep rise in fuel costs that is putting pressure on the hospitality sector.
The demand follows a sharp increase in LPG prices, with rates for commercial cylinders rising significantly in recent weeks. According to the association, this marks the third consecutive monthly hike, driven by global energy price fluctuations linked to tensions in West Asia.
Association President G K Shetty said the cumulative increase over the past two months has been unprecedented. He noted that prices have climbed from around Rs 1,800 to Rs 2,000 in March to over Rs 3,100 now, representing a rise of up to 70 per cent depending on location and timing.
He warned that if the situation continues, hotels and restaurants may be forced to pass on the increased costs to customers, making dining out more expensive and potentially reducing demand.
The association said the hospitality industry is already facing serious challenges due to global disruptions affecting supply chains. The shortage of commercial LPG and the continued price hikes have significantly increased operating expenses for businesses across the state.
It also highlighted that rising fuel costs, along with local charges such as garbage collection fees in Bengaluru and other regulatory expenses, are adding to the financial burden on establishments.
These combined pressures have reportedly led to the closure of several small and medium sized businesses, while many others are struggling to stay afloat.
The association stressed that lowering GST on commercial LPG would help ease cost pressures, stabilise prices, and provide relief to both businesses and consumers.
It has called on both the state and central governments to take immediate action, noting that the hospitality sector plays a key role in employment and economic activity. The association added that timely intervention is essential to prevent further closures and ensure the long term sustainability of the industry.