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Latest Business News, Business News India Today | The HinduBusinessLine

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LPG Crisis: Kerala hoteliers give centre until June 1 for...
2026-05-15 · via Latest Business News, Business News India Today | The HinduBusinessLine
The association said it was unfair that the hotel industry was being made to bear the burden of the domestic sector, which accounts for nearly 85 per cent of cooking gas consumption. Even small tea shops using a single cylinder a day are now facing an additional expense of around ₹1,000 daily.

The association said it was unfair that the hotel industry was being made to bear the burden of the domestic sector, which accounts for nearly 85 per cent of cooking gas consumption. Even small tea shops using a single cylinder a day are now facing an additional expense of around ₹1,000 daily.

The Kerala Hotel and Restaurant Association (KHRA) has warned of strong protests, including a march to Parliament, if the Central government fails to resolve the LPG crisis by June 1.

The decision was taken at the State committee meeting of the association, which also resolved to approach the Union government once again with its demands. KHRA State president G. Jayapal and general secretary N. Abdul Razak alleged that the Centre was ignoring the severe crisis faced by hotels and restaurants.

According to the association, the sharp rise in LPG and other essential commodity prices has pushed the hotel sector into a survival crisis. KHRA warned that if the present situation continues, a majority of hotels in the State may be forced to shut down.

The association said it was unfair that the hotel industry was being made to bear the burden of the domestic sector, which accounts for nearly 85 per cent of cooking gas consumption. Even small tea shops using a single cylinder a day are now facing an additional expense of around ₹1,000 daily.

At the same time, hotel owners said they were unable to increase food prices beyond a certain limit, further squeezing margins.

KHRA had earlier observed a 24-hour statewide strike on May 6, during which thousands of restaurants and bakeries remained closed in protest against the soaring LPG prices. The association pointed out that commercial LPG cylinder prices had nearly doubled over the past six months, crossing ₹3,100 in April.

The steep increase has particularly affected small restaurants and tea shops, many of which are now considering permanent closure due to unsustainable operating costs. KHRA has demanded immediate intervention from the Centre to provide relief on commercial LPG prices.

Reports from Kochi Tea auction market also indicate that the closing down of way-side eateries and hotels due to LPG crisis has hit local buying of tea with loose tea traders remained subdued in the market.

Published on May 15, 2026