Gas: Why Are Prices Rising in Kerala?

A significant increase in commercial LPG prices has triggered widespread protests and shutdowns within Kerala’s food sector. The price of a 19-kg commercial LPG cylinder has surged past ₹3,000 following a staggering ₹1,000 hike, leading many establishments to voice their discontent.

The Kerala Hotel and Restaurant Association has been vocal about the impact of these hikes. P.P. Abdurahman, a representative of the association, stated, “The unilateral ₹1,000 increase is unprecedented in India and wholly unjustifiable.” He warned that if such price increases persist, restaurants might have no choice but to raise their food prices by as much as 60% to remain operational.

This recent surge is not an isolated incident. Over the past five months, the cumulative increase in commercial LPG cylinder prices reached ₹1,498—a trend that raises eyebrows among consumers and business owners alike. That context matters because it highlights the ongoing volatility in energy costs which directly affects everyday expenses.

Compounding the issue are new government regulations aimed at promoting piped natural gas (PNG) connections. By June 30, 2026, households with PNG infrastructure will no longer be eligible for LPG connections or refills. Authorities are currently identifying households using both services, which adds another layer of complexity to an already tense situation.

City gas distribution companies have been directed to prioritize PNG connections for commercial establishments. This shift aims to reduce reliance on LPG—a move that could potentially lower methane emissions but also disrupt existing business operations dependent on traditional LPG supplies.

As protests continue across Kerala, observers are keenly watching how this will affect not just the food sector but also households reliant on LPG for cooking. The Ministry of Petroleum and Natural Gas’s new rules could reshape the landscape of gas usage in the state significantly.

The future remains uncertain as stakeholders await further developments. With mounting pressure from both consumers and businesses, how the government responds could set a precedent for energy policy across India.