Hospitality Industry Battles LPG Price Surge Amid Economic Strain

The KSHA and BHA urge the government to cut GST on commercial LPG cylinders from 18% to 5% due to a steep price hike. Rising costs, attributed to global energy challenges, threaten the hospitality sector. Leaders warn that without government intervention, increased operational costs may be passed to consumers.

The Karnataka State Hotels Association (KSHA) has urged the government to reduce the Goods and Services Tax (GST) on 19-kg commercial LPG cylinders from the current 18% to 5%. This comes in response to a recent Rs 993 hike per cylinder, which has compounded the financial strain on the hospitality sector.

The Bangalore Hotels Association (BHA) has also appealed to Prime Minister Narendra Modi, asking for intervention to address the LPG price hike, GST parity with domestic cylinders, and ensure consistent supply to the industry. The calls for relief come amid ongoing conflicts in West Asia, which have exacerbated global energy prices and disrupted supply chains.

Industry representatives warned that continued hikes could force businesses to increase consumer prices, thereby reducing demand. They highlighted the essential role of the hospitality sector in the economy and employment, pushing for immediate government action to prevent widespread closures and economic hardship.