Bengaluru: City residents are unlikely to get immediate relief from restaurant price hikes despite the restoration of commercial LPG supply to pre-Iran war levels. Hoteliers say they are in no position to roll back menu prices as commercial gas continues to remain expensive, even though supply has normalised.Restaurants across Bengaluru raised menu prices over the past three months, citing a steep increase in commercial LPG prices and the state govt’s revised minimum wage as the key reasons.Bengaluru Hotels’ Association secretary Veerendra Kamat said the restaurants would consider reducing menu prices only if there is a substantial reduction in LPG prices. “While the supply has been normalised, commercial LPG rates remain high. The price has increased by over Rs 1,000 between March and June,” he said.According to Kamat, the reduction expected from July 1 is unlikely to make a meaningful difference. “As per the information we have received, the price will be reduced by not more than Rs 200 per cylinder from July 1. We can reduce menu prices only if cylinder prices come down by at least Rs 600,” he added.However, Karnataka State Hotels’ Association (KSHA) president GK Shetty said the association would encourage hoteliers to pass on any benefit from lower LPG prices to consumers. “We will request our members and other hoteliers across the state to reduce prices by at least Rs 5-10 so that consumers also benefit from the reduction in LPG prices,” he said.LPG distributors confirmed that supply has returned to normal after weeks of restrictions. LG Kumar, secretary of the Karnataka Circle of the All India LPG Distributors’ Federation, said distributors have been receiving adequate supplies for nearly a month. “Supply has returned to normal. We learnt that ships arriving from countries such as the US and Venezuela are unable to unload their stock. We now have sufficient reserves,” he said.Kumar added that the issuance of new domestic LPG connections, which has been suspended during the supply crunch, is expected to resume from July 1.Distributors, however, do not expect a sharp reduction in commercial LPG prices immediately. They said they have been informed that prices may come down by only around Rs 30 per cylinder from July 1. “If the Strait of Hormuz opens up completely, prices could fall further. Crude oil prices have already dropped from around $110 to $76 per barrel. Earlier, LPG prices had risen due to higher insurance costs for ships travelling through the conflict zone,” Kumar explained.
