Bengaluru hoteliers to hike rates from August, seek commodity price control measures from government
Bengaluru’s eateries are expected to hike rates by 10% from August in the wake of rising fuel, gas and milk prices, said the Bruhat Bangalore Hotel Association (BBHA). ET has learned that the association is set to meet Central and state ministers next week to discuss commodity price control. Hoteliers in the city have been warning about a potential price hike for a month, with rising commodity costs.
The hotel association met on Tuesday to discuss ways to deal with the crisis without impacting their rates excessively. “Logistics is an important part of our business…while global crude prices- have dropped many times, somehow our government hasn’t slashed rates. We are meeting the Union petroleum minister to discuss if the rates and tax can be brought down,” BBHA president PC Rao told ET.
Cooking gas is also getting more expensive, he added. “LPG prices have reduced in the global market…the government can easily slash rates by at least Rs 5 per kg,” he said. The state’s Congress regime, which assumed office over two months ago, has seen hikes in prices of several commodities, some of which were a result of the government's decision.
The government allowed the Karnataka Cooperative Milk Federation to increase the price of the Nandini milk by Rs 3 per litre last week. This, combined with a hike in coffee prices to Rs 100 per kg earlier this month has made that morning cuppa much dearer. “The industry is heading towards a loss.
The prices of coffee powder, butter, ghee milk, vegetables and pulses have gone up a lot. Besides, workers’ salaries have also increased…price rise in hotels is an inevitable situation,” By2 Coffee proprietor Raghavendra Padukone said. The increase in the taxes on transport vehicles and steep hike in
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