Karnataka Hotels Association Demands Commercial LPG Price Rollback To February Levels

The Karnataka State Hotels Association (KSHA), led by President G.K. Shetty, has formally petitioned the central government to revert commercial LPG cylinder prices to their February 2026 levels. Currently, hospitality businesses are struggling with costs as high as ₹3,198 per cylinder, a sharp increase from the roughly ₹1,700 price point recorded earlier this year. The association argues that despite global crude oil prices stabilizing between $69 and $72 per barrel, commercial gas costs have not been adjusted accordingly, placing immense strain on the state's restaurant industry.

The significant price surge originated from disruptions in global gas supplies, largely attributed to geopolitical tensions involving the U.S. and Iran. While central authorities have recently eased sectoral restrictions on industrial and commercial LPG supplies, effectively returning to pre-crisis supply levels, the KSHA reports that the hospitality sector remains on the brink of widespread closures. Many small-scale hotel owners note that high operational expenses for fuel, compounded by rising costs for essential commodities and vegetables, have made sustained business operations nearly impossible.

The KSHA remains steadfast in its demand for a price reduction, asserting that lower fuel costs would enable restaurant owners to pass on savings to consumers by reducing food prices by ₹5 to ₹15. While the government has normalized supply chains, hotel owners remain cautious, citing concerns over broader inflationary pressures in the food supply chain. The industry now looks to central policymakers for a concrete reduction in the price of commercial LPG cylinders to ensure the survival of local hospitality businesses.