Automotive Business

Gas Prices Surge: Kerala’s Food Sector Protests

  • May 6, 2026
  • 2 min read
Gas Prices Surge: Kerala’s Food Sector Protests

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 staggering ₹1,000 increase.

The cumulative hike over the past five months totals ₹1,498, prompting the Kerala Hotel and Restaurant Association to voice their concerns. P.P. Abdurahman, a representative of the association, stated, “The unilateral ₹1,000 increase is unprecedented in India and wholly unjustifiable.” Such increases threaten the viability of many establishments.

Authorities are also identifying households using both LPG and PNG services. New rules issued by the Ministry of Petroleum and Natural Gas in March 2026 stipulate that households with a PNG connection cannot apply for new LPG or LPG refills. By June 30, 2026, the government will cut LPG connections for households with existing PNG infrastructure — a move aimed at promoting piped gas connections.

This shift raises questions about the future of commercial cooking gas availability. If such price increases continue, Abdurahman warns that hotels and restaurants may have no choice but to raise food prices by 50% to 60% to stay afloat.

Key facts about the recent LPG price hikes:

  • The price of a 19-kg commercial LPG cylinder has reached ₹3,000 after a ₹1,000 increase.
  • The cumulative hike over the last five months is ₹1,498.
  • The government plans to cut LPG connections for households with PNG infrastructure by June 30, 2026.

As protests escalate across Kerala’s food sector, observers are keenly watching how these developments will influence both local businesses and consumers. The government’s push for PNG connections may ultimately reshape the landscape of gas supply and consumption in the region.