FKCCI writes to Centre, seeks rollback of LPG hike

The battery manufacturing sector is also under pressure due to rising energy costs, which are likely to impact manufacturing costs and market pricing across related industries, she said.

FKCCI president Uma Reddy pointed out that the steep hike would have a cascading effect on multiple industries and trigger widespread inflationary pressure. (Express Illustration)

BENGALURU: The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) expressed grave concern over the unprecedented price hike of Rs 993 for commercial LPG cylinders and has written to the Union government demanding a rollback of the hike.

FKCCI president Uma Reddy pointed out that the steep hike would have a cascading effect on multiple industries and trigger widespread inflationary pressure. “The latest revision represents a nearly 45%-50% increase in a single instance, pushing commercial LPG prices to approximately Rs 3,100-Rs 3,200 per cylinder in Bengaluru and over Rs 3,000 in major cities across the country.

This is one of the sharpest increases in recent times, placing an unsustainable burden on business,” she said, adding that the hotel and hospitality sector is the worst affected, and small establishments in the sector would have to either absorb heavy losses or pass on the burden to consumers.

Reddy also noted that a lot of employees working at small enterprises belong to underserved communities who are dependent on affordable local meals and would face the brunt of these eateries revising their prices.

She pointed out that the welding and fabrication industry, particularly MSMEs, is facing significant cost escalation, as LPG is a critical input for core operations. The battery manufacturing sector is also under pressure due to rising energy costs, which are likely to impact manufacturing costs and market pricing across related industries, she said.

Reddy urged the Union government to implement corrective measures, including rationalisation of taxes on commercial LPG, targeted relief support for MSMEs and policy interventions to stabilise fuel price volatility. “FKCCI strongly urges the Union government to immediately roll back this steep hike and initiate urgent corrective measures.

If left unaddressed, this unprecedented increase will severely disrupt industries, including the hospitality sector, burden consumers and derail economic momentum. The industry cannot absorb such shocks any longer and decisive and immediate intervention is the need of the hour,” she said.