The price of items in Bengaluru’s darshinis, small restaurants and fine-dining restaurants will go up by 8-20% due to the increase in prices of several commodities as well as commercial LPG gas prices. The price increase will vary depending on how the cost has been rounded off. Speaking to TNM, PC Rao, the President of the Bruhat Bengaluru Hoteliers Association (BBHA), said that there will be a 10% increase on average. He attributed the increase to the increase in prices of vegetables, pulses, and cooking oil, which he said was “abnormal”.
“Cooking oil which used to be Rs 85 is now Rs 155. All vegetables cost more than Rs 50. Similarly, the cost of pulses has also increased,” he said. As per consumer price inflation data for September, oils and fats had a year-on-year inflation of 37.10%. Prices of vegetables in the southern states have been impacted due to continuous rains.
In addition, and what could be the biggest stressor for small restaurants, he said that the price of commercial cooking gas which has seen a steep increase has led to an increase in price. “There is a very abnormal increase in the price of commercial cooking gas which used to be Rs 1,100 for 19 kg [in May 2020] and is now Rs 2,060. It has gone up by more than 70%. We have no other option,” he said.
This increase comes as oil marketing companies hiked the prices for commercial 19kg LPG cylinders by Rs 266 from November 1. The price increase also factored in the effect of the LPG distributors commission being hiked by the Union government. PC Rao added that rates have not been increased in the last two years, and so this 10% increase is being brought in.
He added that this price rise will be effective in some restaurants from November 8, some from November 15 and the rest from December 15.
The percentage increase is varied because of the rounding off, he said. For example, if meals cost Rs 65 previously, it will be charged at Rs 75 now. If the price of coffee was Rs 12, it will be hiked to Rs 15.
“For darshinis, the increase is a must because they are all under heavy loss,” Rao told TNM This does not include star hotels, as they do not fall under the purview of the BBHA. In addition to hotel costs, he added that representations for the GST on commercial LPG to be reduced, and brought on par with what is charged for domestic LPG. If enacted, he said it will come down by roughly Rs 250.