Hotels seek AP govt intervention over PNG prices, GST burden

Vijayawada: The Vijayawada Hotel Owners Association has urged the Andhra Pradesh govt to intervene in the pricing of commercial piped natural gas (PNG) and seek a reduction in GST on rental premises used by hotels and restaurants, citing mounting operational costs.In a representation submitted to joint collector S Ilakkiya, the association alleged that commercial PNG prices charged by some distributors in Vijayawada are significantly higher than those in other regions, creating an additional financial burden on the hospitality sector. The association said that while public sector oil companies broadly maintain standard pricing structures, certain private distributors are charging higher rates, affecting the viability of hotels and restaurants.The association pointed to a price gap between Vijayawada and Rajahmundry and sought uniform regulation of commercial PNG prices across the state. It argued that rationalisation of rates is necessary, especially as businesses are encouraged to shift towards piped gas systems.The hotel body also requested a reduction in GST on rental premises used by the hospitality sector from the current 18% to 5%. It said the existing tax structure is placing considerable pressure on small and medium-sized establishments and affecting their operational sustainability.The association stated that the hospitality industry contributes significantly to employment generation, tourism, economic activity and state revenues, and sought favourable consideration of its demands to ensure the sector’s long-term growth and sustainability.