The impact of back to back fuel price hike is harsher on the hotel industry which is already struggling with high commercial LPG cylinder prices and shortage concerns.
| Photo Credit: ALLEN EGENUSE J
The latest hike in petrol and diesel prices — the third increase within just 10 days — is expected to soon hit sectors dependent on transportation and logistics, with the hotel industry in Bengaluru warning that businesses are running out of room to absorb rising costs without eventually pushing prices up for consumers.
Since May 15, fuel prices have cumulatively increased by ₹4.8 per litre via three back-to-back hikes.
Hotels and restaurants said the impact is harsher than ever as the industry is already struggling with high commercial LPG cylinder prices and continued shortage concerns. Almost everything they depend on, from vegetables, milk, meat and groceries to cooking supplies and even laundry materials, arrives through transport networks dependent on diesel.
“Once fuel prices rise, transport charges go up, suppliers revise rates, and the pressure builds across the entire chain. Repeated fuel hikes within short intervals are making it difficult for businesses to function without taking a hit,” said Roopa Shashtri from Rasapaka in Gandhinagar.
However, while costs continue to rise, hotel owners say they cannot increase menu prices every few days and expect customers to absorb it each time. “For now, most are managing internally, but that cannot continue for long. This will lead to retail inflation,” S.P. Krishnaraj, who runs Nisarga Grand on Nrupathanga Road, said.
Hoteliers said that if fuel prices continue to rise at this pace, the impact will inevitably spill into everyday retail prices and consumer spending. They said the industry will not be surprised if commercial LPG cylinder prices are increased again in the coming weeks.
Published – May 23, 2026 01:01 pm IST
