A significant number of hotels and restaurants in Ernakulam district are still closed, unable to recover from the relentless surge in commercial liquefied petroleum gas (LPG) prices, according to the Kerala Hotel and Restaurants Association (KHRA). Out of nearly 7,000 registered establishments in the district, approximately 1,750 shops have completely failed to reopen their doors.
Impact of Price Hikes
An unprecedented hike of Rs 993 per commercial cylinder on May 1 forced nearly 60% of hotel and restaurant owners across Kochi to temporarily shut down. While over half of those businesses have managed to resume operations, a critical one-quarter of the industry remains frozen. KHRA Ernakulam district secretary Rahim K T stated, "Nearly 25% of the hotel owners are yet to reopen shops. While shortage of migrant labourers is a factor, the sharp rise in daily operational expenditures is continuing to affect these establishments which remain closed."
Owner Concerns
Hotel and restaurant owners face a difficult situation. They had adjusted their menus upward during earlier fuel hikes and fear that another increase will permanently drive away regular customers. Shibin E K, a hotel owner, remarked, "Even now we are selling a cup of tea for Rs 15. How can we increase it further?" He pointed out that the middle class, which forms the lion's share of the local customer base, has not seen a rise in disposable income. "Otherwise too, we notice a distinct pattern. Families dine out during the first half of the month, but business plummets by mid-month as household budgets deplete. Many hotels, located near railway and bus stations, rely on regular commuters and can't increase prices and risk losing them," he added.
Broader Cost Increases
The steep cost of gas is aggravated by a broader rise in essential ingredients. Vegetable and commodity prices have climbed steadily over the past month, compounded by a minimum Rs 4 hike on milk and dairy products. On Monday, commercial LPG prices were hiked yet again, by Rs 46, driven by West Asia supply anxieties. This marks the fourth commercial hike this year. While domestic cooking gas remains subsidised, a commercial 19-kg cylinder now costs Rs 3,131. The commercial LPG cylinder price was hiked by a steep Rs 993 per cylinder on May 1, preceded by another Rs 195.5 per cylinder hike on April 1 and the first hike of Rs 115 per cylinder on March 7.
