Hoteliers urge Centre to reduce fuel prices

Citing significant drop in international crude oil rates, hoteliers’ association highlights the need to reduce prices

The Bruhat Bengaluru Hoteliers’ Association has called on the Central government to lower fuel prices, citing the significant drop in international crude oil rates. In a letter addressed to the government, the association pointed out that the current price of crude oil stands at $74.72 per barrel, which translates to approximately Rs 39 per litre. Despite this reduction, there has been no corresponding decrease in petrol and diesel prices in India.

The association highlighted that citizens are bearing the brunt of over 50% in taxes levied by both the central and state governments. Currently, petrol is priced at Rs 102.86 per litre and diesel at Rs 88.94 per litre in Bengaluru, imposing a heavy financial burden on businesses and the general public. “The high cost of fuel directly impacts transportation expenses, which in turn raises the prices of essential goods like milk, vegetables, and provisions,” the letter stated. “This, coupled with the rising fuel costs, could further damage the already struggling tourism industry.” The association has requested the government to reduce fuel prices and bring petrol and diesel under the Goods and Services Tax (GST) regime, suggesting this would provide relief to both businesses and consumers alike.

A hotelier said, “Reducing fuel prices is not just a matter of economic relief; it’s a necessity for the well-being of businesses and the general public. When fuel prices soar, they create a ripple effect across the entire economy, driving up transportation costs, inflating the prices of essential goods, and placing a heavy burden on industries like tourism and hospitality that rely on affordable travel.

For a common person, high fuel costs translate into higher costs for everyday items such as food and essentials, stretching household budgets even thinner. Moreover, businesses, especially small and medium enterprises, face increased operational expenses, making it harder to sustain profitability in a challenging economic climate. In this interconnected system, high fuel prices ultimately slow down growth, affect job creation, and widen the gap between the cost of living and wages.”

Another hotelier added, “To ensure long-term stability, fuel needs to be priced in a way that reflects the global crude oil market and does not disproportionately tax citizens. Bringing fuel under the GST would create a fairer, more transparent system. Lowering prices would ensure that businesses and consumers alike can thrive without the heavy burden of inflated fuel costs. It’s a move toward economic balance and fairness that we desperately need.”