Hoteliers in Bengaluru under strain as LPG prices go up

BENGALURU: The ongoing conflict in the Middle East has sparked concerns about a potential gas cylinder shortage in India, prompting sub-dealers to create an artificial scarcity and hike prices in the city.

Despite assurances from the government that there’s no LPG or LNG shortage, prices have risen – Rs 60 for domestic cylinders and Rs 115 for commercial ones. Sub-dealers are buying from main dealers, stockpiling 10,000 cylinders, and selling them at inflated prices, sometimes for Rs 400-500 more.

The conflict has hit Bengaluru’s hotel industry hard, with many struggling to get cylinders. Some hotels are forced to buy from the black market. The sub-dealers’ godowns should be raided, and action taken to curb this artificial shortage, they said.

“The cost of a cylinder has already rised by Rs 300 for us in a week since the Middle East conflict started. Our suppliers have been sending messages claiming that Indian Oil Corporation has advised them not to give any sort of discounts and that the price has gone up by Rs 220. We need 5-6 cylinders every day”, said Roopa, a hotel owner.

Our dealer advised us to stock 10-20 cylinders, but even that will last us only 2-3 days. We are in a dilemma and we may have to shut down hotels rather than increasing prices if the situation persists”, Roopa added.