Fuel price hike: Bengaluru hoteliers feel the heat

The impact of the fuel price hike is harsher on the hotel industry, which is already grappling with high commercial LPG cylinder prices and fears of shortages. | Photo credit: ALLEN EGENUSE J.

The latest hike in petrol and diesel prices – the third increase in just 10 days – is expected to hit transport and logistics-dependent industries soon. The hotel industry in Bengaluru also warned that businesses are running out of room to absorb rising costs without ultimately pushing up prices for consumers.

Since May 15, fuel prices have been cumulatively increased by ₹ 4.8 per liter through three simultaneous hikes.

Hotels and restaurants said the impact is harsher than ever as the industry is already grappling with high commercial LPG cylinder prices and lingering fears of shortages. Almost everything they depend on, from vegetables, milk, meat and groceries to kitchen utensils and even laundry materials, comes through oil-dependent transport networks.

“Once fuel prices go up, transport charges go up, suppliers revise rates and pressure builds across the chain. Repeated fuel hikes at short intervals make it difficult for businesses to function without intervention,” said Roopa Shashtri of Rasapaka in Gandhinagar.

But even as costs continue to rise, hoteliers say they can’t raise menu prices every few days and expect customers to absorb it each time. “So far, most are managing internally, but that cannot last long. This will lead to retail inflation,” said SP Krishnaraj, who runs Nisarga Grand on Nrupathanga Road.

Hoteliers said that if fuel prices continue to rise at this rate, the impact will inevitably spill over into everyday retail prices and consumer spending. They said the industry would not be surprised if the prices of commercial LPG cylinders rise again in the coming weeks.

Published – 23 May 2026 13:01 IST