Fall in cooking gas price brings relief to hoteliers

Commercial LPG cylinder price cut by ₹100

The reduction in the price of commercial liquefied petroleum gas (LPG) has brought small relief to owners of restaurants, eateries and tea shops who had been struggling to get back on their feet after the lockdown.

Effective January 1, the price of one 19 kg commercial LPG cylinder has been reduced by ₹100.

“Last month they had hiked the price of commercial cylinder by ₹130 each. And since last year, the price of cylinder used by restaurants and tea shops had almost doubled. This relief therefore comes only as a small comfort. However, we are headed towards the third COVID-19 wave and already seating has been reduced in restaurants to 50%,” said M. Ravi, President of Chennai Hotels’ Association, who went on to say that restaurants were fixing daily menus according to the prices of vegetables.

“The menu is altered every day. Due to poor arrivals, vegetable prices have remained high. If the price of one vegetable goes down, another shoots up. Similarly, the price of edible oil too has gone up. In such a scenario, the price of LPG alone being reduced will not provide us enough relief. We need a reduction in GST on LPG from 18% to 5%,” he said.

S. Murugesan, who runs an Aavin Milk centre in East Tambaram that also sells tea, said the reduction was a welcome one. “A further reduction would only help small vendors like me. I have been selling tea at ₹10 a cup since I stand to lose customers if I hike the price. Like others, I hope the price of LPG would go down even further,” he said.

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