The Hindu : Karnataka / Bangalore News : Hotels and auto drivers hit hard

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Saturday, Jan 12, 2008
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Karnataka

Karnataka - Bangalore

Hotels and auto drivers hit hard

Anil Kumar Sastry

Prices of commercial, auto LPG have soared since December

BANGALORE: Prices of commercial and auto liquefied petroleum gas (LPG) have gone up since December 2007.

They touched Rs. 1,135 a cylinder and Rs. 35.38 a litre respectively in January 2008. The phenomenal price rise, unheard in recent times, has hit the hotel and catering industry hard, and squeezed the pockets of autorickshaw drivers.

Unlike heavily subsidised domestic LPG, international LPG prices govern prices of commercial and auto LPG.

The prices used to hover between Rs. 800 and Rs. 900 for commercial cylinders and Rs. 23 and Rs. 29 a litre for auto LPG earlier.

A senior official in the Indian Oil Corporation (IOC) said that the company was unaware of the reason for the sudden spurt in the prices. IOC coordinates prices and supply of petroleum products of public sector oil companies in the State.

Price rise of commercial and auto LPG was a normal phenomenon during the winter when cold countries extensively use LPG for room heating.

Public Sector Undertaking oil companies — IOC, Bharat Petroleum Company and Hindustan Petroleum Company — sell 52,000 tonnes of domestic LPG (in 14 kg cylinders), 6,500 tonnes of commercial LPG (in 19 kg cylinders) and 6,000 tonnes of auto LPG a month in the State.

While diversion of domestic LPG cylinders for commercial purposes has relatively come down, unscrupulous elements have now resorted to refilling domestic LPG into commercial cylinders.

One such case was exposed recently when Deputy Director of Food and Civil Supplies (Bangalore East) K.L. Narasimha Murthy and his team raided a residential premises in Thippasandra. Many similar illegal activities go unnoticed.

Hotel industry hit

Unable to bear the burden of increase in prices of various inputs, including commercial LPG, eateries in Bangalore and other parts of the State have passed on the burden to customers.

With this, prices of all eatables and beverages have gone up at least by Rs. 2.

According to Bruhat Bangalore Hoteliers’ Association president K.N. Vasudeva Adiga, hoteliers were compelled to increase the prices.

“We are running the show with difficulty as prices of every input — vegetables, milk, LPG and groceries and the cost of establishment — have increased manifold,” he told The Hindu.

Autorickshaw drivers

After autorickshaws in Bangalore were compulsorily made to run on LPG, the fares were revised on March 15, 2006.

It was decided at the Regional Transport Authority meeting that no demand for revision should be made till the auto LPG price touches Rs. 40 a litre.

However, although a litre of auto LPG now costs Rs. 35.38, various autorickshaw drivers’ unions in Bangalore have been demanding a revision in the fare.

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