25% of eateries in Ernakulam remain shut as LPG costs soar

Kochi: A substantial number of hotels and restaurants in Ernakulam district remain closed, unable to recover from a relentless onslaught of commercial liquefied petroleum gas (LPG) price hikes.

According to Kerala Hotel and Restaurants Association (KHRA), out of nearly 7,000 registered establishments in the district, approximately 1,750 shops have been completely unable to reopen their doors.

Earlier, 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 shop.

While over half of those businesses have managed to resume operations, a critical one-quarter of the industry remains frozen.

“Nearly 25% of the hotel owners are yet to reopen shops. While shortage of migrant labourers is a factor, sharp rise in daily operational expenditures is continuing to affect these establishments which remain closed,” said KHRA Ernakulam district secretary Rahim K T.

Meanwhile, hotel and restaurant owners are facing a difficult situation. They had adjusted their menus upward during earlier fuel hikes and fear that another increase will permanently drive away regular customers.

“Even now we are selling a cup of tea for Rs 15. How can we increase it further?” said Shibin E K, a hotel owner.

Middle class, which forms the lion’s share of local customer base, has not seen a rise in disposable income, he pointed out.

“Otherwise too, we notice a distinct pattern. Families dine out during 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 price and risk losing them,” Shibin added.

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.

Commercial LPG cylinder price was hiked by a steep Rs 993 per cylinder on May 1. This was preceded by another Rs 195.5 per cylinder hike on April 1 and the first of the hikes of Rs 115 per cylinder on March 7.