Hoteliers, bakers, tea shops and wedding halls seek reduction in commercial LPG prices

With crude oil prices returning to pre-war levels, various associations affected by the extraordinary hike in commercial liquefied petroleum gas (LPG) prices have now sought a roll back of the rates. Brent crude, the international benchmark, dropped to about USD 72-73 a barrel, while US crude fell below USD 70 a barrel. A non-domestic cylinder that was priced at ₹1,899.50 per 19 kg cylinder on February 1, is priced at ₹3,283 from June 1. 

M. Venkadasubbu, president, Tamil Nadu Hotels Association, said that Central government should reduce prices of petrol, diesel and LPG. “Hotels are finding it very difficult to manage LPG at such rates. It is eating into our margins. Not everyone could convert to other fuels. We could increase food prices only by 10% as a higher hike would lead to us losing our customers. Firewood is driving away long-timer staffers since the working environment is not conducive to them. Around 10% of hotels and small eateries have closed down. But those who continue to function, have heavy loan burdens,” he said. 

Tamil Nadu Bakers Federation’s P. P. Subramaniam said that their industry was a diversified one where electrical, gas, diesel and few firewood ovens worked to bake bread, cakes and pastries. “We are already burdened by raw material prices. In such a situation, a reduction in LPG and diesel prices would help the industry members to remain afloat,” he said. 

Chennai Metropolitan Tea Shop Owners Association president T. Anandan said that they had submitted a petition to IndianOil but yet to get any response from officials. “At present, tea shops are barely managing to run their outlets by hiking tea and coffee prices. We cannot hike too much also, since tea and coffee are being consumed by ordinary people. We have told our members to ensure quality products,” he said. 

Tamil Nadu Marriage Hall Owners Association State president A. John Amalraj, said that there had been occasions when their members have had to pay ₹10,000 even per cylinder as muhurthams could not be put off. Though a few caterers asked us to allow the use of domestic cylinders, we could not as that would amount to illegal diversion. These past few months have been very tough. A reduction of even ₹1,000 per cylinder would come as a great relief for us,” he said.