Centre hikes commercial LPG prices by over Rs 100; to cost around Rs 2000 in Chennai

Centre hikes commercial LPG prices by over Rs 100; to cost around Rs 2000 in Chennai

The Centre has recently announced a hike in commercial LPG prices, causing concerns among businesses. The prices have been increased by over Rs 100, which means commercial LPG will now cost around Rs 2000 in Chennai. This sudden price hike has left many businesses worried about its impact on their profitability. Commercial LPG is widely used by various industries, such as restaurants, hotels, hospitals, and manufacturing units, for cooking and heating purposes. The increased prices will directly affect their operational costs, as LPG is an essential fuel source for them. The rising fuel prices have been a cause of concern for businesses in recent times, and this latest hike will further add to their financial burden. Many businesses are already struggling due to the economic slowdown caused by the COVID-19 pandemic. The increased cost of LPG will only worsen their situation, as they will have to bear additional expenses. This could lead to a rise in prices of goods and services, as businesses might pass on the increased costs to consumers. Small businesses, in particular, will be severely impacted by this price hike, as they operate on thin profit margins. It will be challenging for them to absorb the increased costs, and some might even struggle to stay afloat. The Centre’s decision to hike commercial LPG prices has been met with criticism from various industry associations and business owners. They argue that such a move will hamper the ease of doing business and hinder economic growth. In response to the hike, many businesses are now exploring alternative fuel options or looking for ways to reduce their LPG consumption. Some may even consider shifting to cleaner and more sustainable energy sources, such as solar power or electric heating systems. However, these alternatives might not be feasible or cost-effective for every business, especially smaller ones. The increase in commercial LPG prices also highlights the need for the government to focus on policies that promote affordable and reliable energy sources for businesses. It is crucial to strike a balance between fuel prices and the interests of businesses, as they play a significant role in the overall economy. The Centre should consider revisiting the decision to hike commercial LPG prices and consult with industry stakeholders to find a more viable solution. Rising fuel prices not only impact businesses but also have a broader impact on the economy, including inflation and cost of living. It is essential to address this issue proactively to support businesses and ensure sustainable economic growth.

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TIS Staff

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