The price is expected to increase by 8-20% and will be applied by December 1.
The price of items in darshinis, small restaurants and fine dining restaurants in Bengaluru will increase by 8-20% due to the increase in the prices of several products as well as the prices of commercial LPG gas. The price increase will vary depending on how the cost has been rounded. Speaking to TNM, PC Rao, president of the Bruhat Bengaluru Hoteliers Association (BBHA), said there would be a 10% increase on average. He attributed the increase to higher prices for vegetables, pulses and cooking oil, which he called “abnormal”.
“Cooking oil which previously cost Rs 85 is now Rs 155. All vegetables cost more than Rs 50. Likewise, the cost of pulses has also increased,” he said. According to consumer price inflation data for September, oils and fats posted year-over-year inflation of 37.10%. Vegetable prices in the southern states have been affected due to continued rains.
In addition, and what could be the biggest stressor for small restaurants, he said the price of commercial cooking gas, which has seen a big increase, has caused prices to rise. “There is a very abnormal increase in the price of commercial cooking gas which was previously Rs 1,100 for 19 kg. [in May 2020] and is now Rs 2,060. It has increased by over 70%. We have no other choice, ”he said.
The increase comes as oil marketing companies raised the prices of 19kg commercial LPG cylinders to Rs 266 from November 1. The price increase also took into account the effect of the increase in the commission of LPG distributors by the Union government. PC Rao added that the tariffs had not been increased in the past two years, and therefore this 10% increase is underway.
He added that this price increase will be effective in some restaurants from November 8, some from November 15 and the rest from December 15.
The percentage increase varies due to rounding, he said. For example, if meals cost Rs 65 before, they will be billed at Rs 75 now. If the price of the coffee was Rs 12, it will increase to Rs 15.
“For the darshinis, the increase is essential because they all suffer heavy losses,” Rao told TNM. This does not include star hotels, as they do not fall under the jurisdiction of the BBHA. In addition to hotel costs, he added that representations for GST on commercial LPG should be reduced, and brought back to the same level as what is charged for domestic LPG. If passed he said he would decrease by around Rs.250.
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