Daijiworld Media Network – Mangaluru
Mangaluru, May 3: Hard-hit by the steep rise in commercial LPG prices and supply disruptions, hotel owners in Dakshina Kannada (DK) and Udupi districts have decided to hike food prices by 10% to 15% to offset rising operational costs.
The price of commercial LPG cylinders recently saw a sharp increase of Rs 993, dealing a severe blow to the coastal hospitality industry. Following demands from its members, the Mangaluru Hotel Owners’ Association has approved a 15% hike in food prices, effective immediately.
Industry in distress
Hotel owners are caught in a dilemma failing to raise prices leads to heavy losses, while doing so risks driving away customers. One local eatery owner noted that while they resisted hiking prices for the last two months, the burden has now become unbearable.
A hotelier in the State Bank area warned that if gas prices do not decrease within the next 10 days, some establishments in Mangaluru may be forced to shut down. Small and medium-sized hotels, canteens, and street-side fast-food centers are the most affected, as many menu items cannot be prepared using traditional firewood.
Black marketing and supply issues
Supply shortages have led to a thriving black market, where commercial cylinders are reportedly being sold for over Rs 6,000. Traders in areas like Kadri noted that they are forced to buy gas at nearly double the official rate due to artificial scarcity.
Hoteliers have urged the district administration and police to crack down on illegal hoarding and ensure gas is available only through official dealers.
Udupi hotels to follow suit
In Udupi, a final decision on price revisions is expected next week following a meeting with the state association. Local hotel owners expressed concerns that half of their daily income is now being spent on gas alone, making it difficult to even pay staff wages.
The hike in gas prices, combined with the rising costs of vegetables, cooking oil, and spices, has created a major crisis for the industry during the peak tourist season. Residents have also complained about delays in domestic gas delivery, with supplies taking up to 15 days to arrive even after a booking is confirmed.