Hotel owners across Belagavi have decided to increase food prices by 7% to 10% following a steep hike in commercial LPG cylinder rates, a move that has significantly impacted the hospitality sector.
After Thursday's sudden increase in commercial LPG prices, several hotels, tea stalls, and roadside food vendors in the city have already revised the prices of commonly consumed items such as bhaji, pulao, puri-bhaji, idli, and vada.
Belagavi has a large network of small and medium-sized hotels, eateries, tea stalls, and food carts that rely heavily on commercial LPG cylinders for daily operations. In view of rising operational costs, the Belagavi Hotel Owners' Association has decided to implement a uniform price hike of 7% to 10%.
The increase has started affecting consumers, with higher food prices adding to their financial burden. Traders and hoteliers have also warned that further revisions may become unavoidable if LPG prices and the cost of essential raw materials continue to rise.
Association president Ajay Pai said the sudden surge in commercial LPG rates severely disrupted the financial planning of hotel operators, leaving them with little option but to revise menu prices. "Price reductions will be considered only after gas prices are brought under control," Pai said.
He added that members of the association held detailed discussions on the growing financial burden caused by the increase in cooking gas prices before arriving at the decision.
The association has also resolved to urge the Union government to intervene immediately and regulate commercial LPG prices. It warned that any further escalation could seriously destabilise the already strained hotel and food service industry.
