LPG hike will severely impact Himachal’s tourism-driven economy: Vikramaditya

Highlighting the impact on the state’s finances, the minister said Himachal could face an additional burden of around ₹70 crore due to rising input costs, particularly in infrastructure and road development works

Alleging that the LPG price hike was “anticipated”, Himachal Pradesh public work department (PWD) minister Vikramaditya Singh has expressed concern over its impact on the state’s tourism-driven economy.

Himachal Pradesh public works department minister Vikramaditya Singh. (File)

“This was anticipated. The prices were held back due to elections and increased as soon as polling ended. “This is bound to increase the burden on the hospitality sector, especially at a time when the peak tourist season is approaching,” said the minister while speaking to media on Saturday.

He added that the increased cost would eventually be passed on to consumers, alleging that opportunities to procure cheaper oil were not effectively utilised, leading to additional financial burden on consumers.

Highlighting the impact on the state’s finances, the minister said Himachal could face an additional burden of around ₹70 crore due to rising input costs, particularly in infrastructure and road development works. “The increase in bitumen and fuel prices is affecting development works. Contractors are reluctant to take up projects due to rising costs,” he said.

Hike to fuel inflation

Condemning the steep hike of ₹993 in commercial LPG cylinder prices eatery owners in Shimla cautioned that it would fuel inflation, as food prices would also go up as a consequence.

“The shortage of commercial gas cylinders and now this hike will adversely affect our business. This is the second time since the start of the US-Israel-Iran war that the rates have been revised. Not only regular customers but also tourists will feel the pinch as the price burden would naturally be transferred to customers. High food rates would also affect our business,” said Yoginder, a local dhaba cook.

A hotelier and former president of Shimla Veopar Mandal, Inderjeet Singh, criticising the Union government said that hoteliers, dhaba owners and tea sellers are feeling the heat of gas price hike, but the burden would ultimately be transferred to the customer, as food prices would go up.

Terming the steep hike in commercial gas prices “anti-people,” CPI(M) leader Vijender Mehra demanded its immediate rollback.