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Kerala’s recovering hotel sector hit by sharp commercial LPG price hike; shutdown on 6 May

While domestic LPG cylinder prices remain unchanged for now, restrictions in distribution due to limited availability have added to operational difficulties for commercial users.

Published May 02, 2026 | 12:28 PMUpdated May 02, 2026 | 12:28 PM

Commercial LPG cylinders. (iStock)

Synopsis: The agitation comes in the wake of a one-time increase of ₹993 in the price of a 19-kg commercial LPG cylinder, pushing rates beyond ₹3,000. In key cities, the revised prices have climbed to around ₹3,106 in Thiruvananthapuram, ₹3,085 in Kochi, and ₹3,117 in Kozhikode, placing significant strain on the hospitality sector.

Kerala’s hotel and restaurant industry, which had only recently begun regaining stability after months of disruption, is facing a fresh setback following a steep hike in commercial LPG prices.

In protest, establishments across the state will remain closed on Wednesday, 6 May, responding to a shutdown call issued by the Kerala Hotel and Restaurant Association.

The agitation comes in the wake of a one-time increase of ₹993 in the price of a 19-kg commercial LPG cylinder, pushing rates beyond ₹3,000. In key cities, the revised prices have climbed to around ₹3,106 in Thiruvananthapuram, ₹3,085 in Kochi, and ₹3,117 in Kozhikode, placing significant strain on the hospitality sector.

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Issues with sudden spike

Extending support to the protest, the Kerala Vyapari Vyavasayi Ekopana Samithi (KVVES) has strongly criticised the Centre’s decision, calling it “unacceptable.”

It said the sudden spike has compounded existing challenges such as rising rents, increasing wages, and supply disruptions.

They pointed out that many establishments, which had only just reopened after earlier LPG shortages, are now struggling to operate.

A shortage of commercial cylinders has worsened the situation, with less than half of hotels functioning normally and several unable to serve meals consistently.

Industry representatives warn that the consequences could ripple beyond the sector.

With operating costs surging, many hoteliers may have little choice but to raise food prices, a move that would directly impact daily wage earners, students, and hostel residents who depend heavily on affordable meals from local eateries.

The sector had been on a slow path to recovery after previous shutdowns linked to fuel supply constraints during the Iran–Israel conflict.

KVVES demand rollback

However, the latest hike—far steeper than earlier increases of ₹100 to ₹150—has come as a shock to business owners, many of whom learned of the revised rates only after starting their day’s operations.

While domestic LPG cylinder prices remain unchanged for now, restrictions in distribution due to limited availability have added to operational difficulties for commercial users.

KVVES has demanded an immediate rollback of the hike, warning that intensified protest measures could follow if authorities fail to reconsider the decision.

Meanwhile, the May 6 shutdown is expected to disrupt normal life across Kerala, underscoring the growing distress within a sector that had only just begun to find its footing again.

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