Nizamabad: Restaurants reeling under LPG price shock

Nizamabad: While the business was just picking up for few days after decline in Covid cases, out of blue, the Centre hiked commercial LPG cylinder prices by Rs 105, shooting up input cost of hotels and restaurants in Nizamabad district.

The price of the 19 kg commercial gas cylinder price until a year ago was only Rs 1000 – Rs 1,100. The oil companies routinely increase or decrease the price of a gas cylinder each month. At present the price of the commercial gas cylinder has gone up to Rs 2,147.

There are 25,956 connections of commercial gas cylinders (CSR) in Nizamabad district. Of these, around 9,000 units are used by small roadside eateries and tea stalls and remaining 16,000 units are consumed by large eateries. Hotels, restaurants, tea stalls, tiffin centres, carts, engineering college hostels and corporate schools use commercial gas cylinders. Each management buys an average of 5 to 6 gas cylinders. A total of 11,1000 commercial gas cylinders are consumed every month in Nizamabad district.

The increase in the price of a commercial cylinder by Rs 105.50 will place an additional burden of Rs 1, 17 crore on consumers of commercial gas cylinders. Small hotels, tiffin centers, roadside eateries and tea stall owners across district have been unable to do business properly for the past two years due to Covid pandemic. The survival of star hotels and small eateries is in question. Many eateries are in financial crisis. Customers are coming to hotels right now. These eateries are worried about the rising price of gas cylinders at this time. Hoteliers are voicing that we are not able to raise the prices of their items as easily as the petroleum companies do.

Traders are worried that we will incur losses due to rising gas prices and that it would be better to close the hotel instead.