Gas Prices Surge in Kerala’s Food Sector

A significant increase in commercial LPG prices has led to widespread protests and shutdowns in Kerala’s food sector. The price of a 19-kg commercial LPG cylinder has crossed ₹3,000 after a ₹1,000 increase.

The cumulative hike in commercial LPG cylinder prices over the past five months is ₹1,498. P.P. Abdurahman from the Kerala Hotel and Restaurant Association stated, “The unilateral ₹1,000 increase is unprecedented in India and wholly unjustifiable.” He warned that if such price increases continue, establishments would need to raise food prices by 50% to 60% to survive.

The government aims to promote piped natural gas (PNG) connections and reduce reliance on LPG. Households with PNG infrastructure will lose their LPG connections by June 30, 2026. Authorities are currently identifying households using both LPG and PNG services.

New rules for gas cylinder connections were issued by the Ministry of Petroleum and Natural Gas in March 2026. Households with a PNG connection cannot apply for new LPG or LPG refills. City gas distribution companies are advised to prioritize PNG connections for commercial establishments.

Observers expect further unrest as business owners grapple with these rising costs. The protests highlight the tension between regulatory changes and the economic realities facing the food sector.