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Hoteliers and bakers demand reduction in commercial LPG prices amid falling crude oil rates

Several associations in Tamil Nadu, such as Tamil Nadu Hotels Association under M. Venkadasubbu, are calling for a cut in LPG prices following a drop in crude oil rates to USD 72-73 per barrel. The skyrocketing price of a 19 kg cylinder, which surged from ₹1,899.50 to ₹3,283, has resulted in about 10% of hotels and small eateries shutting down.

BRIC Team
BRIC Team
Jun 30, 2026 · 2 min read · 4 views
Hoteliers and bakers demand reduction in commercial LPG prices amid falling crude oil rates

Key Takeaways

  • Brent crude oil prices have dropped to USD 72-73 per barrel, prompting calls for reduced LPG costs in Tamil Nadu.
  • The price of a non-domestic 19 kg LPG cylinder surged from ₹1,899.50 to ₹3,283 between February and June 2023.
  • M. Venkadasubbu stated that hotels can only increase food prices by 10% before risking customer loss due to high LPG costs.
  • Around 10% of hotels and small eateries in Tamil Nadu have closed due to soaring LPG prices and heavy loan burdens.
  • A. John Amalraj revealed that some marriage hall owners paid up to ₹10,000 per cylinder during peak wedding seasons.

Various associations in Tamil Nadu are calling for reduction in commercial liquefied petroleum gas (LPG) prices as crude oil rates have reverted to pre-war levels. Brent crude now hovers around USD 72-73 per barrel,while US crude has dipped below USD 70. This shift comes as the price of non-domestic 19 kg cylinder surged from ₹1,899.50 on February 1 to ₹3,283 on June 1 .

M. Venkadasubbu, president of the Tamil Nadu Hotels Association, emphasized the financial strain on hotels due to soaring LPG costs. He urged the Central government to lower prices for petrol, diesel, and LPG . “Hotels are finding it very difficult to manage LPG at such rates. It is eating into our margins,” he stated. He noted that while they could only increase food prices by 10%,further hikes would risk losing customers. situation has led to the closure of around 10% of hotels and small eateries,with many still grappling with heavy loan burdens .

In the baking sector,P. P. Subramaniam of the Tamil Nadu Bakers Federation echoed similar concerns. He pointed out that their industry relies on a mix of electrical, gas,diesel, and firewood ovens for production. “We are already burdened by raw material prices. In such a situation,a reduction in LPG and diesel prices would help the industry members to remain afloat,” he remarked.

Tea shop owners are also feeling the pinch. T. Anandan, president of the Chennai Metropolitan Tea Shop Owners Association,mentioned that they had submitted a petition to IndianOil but had yet to receive a response . “At present,tea shops are barely managing to run their outlets by hiking tea and coffee prices. We cannot hike too much also, since tea and coffee are being consumed by ordinary people,” he explained . He urged members to maintain quality despite the challenges .

The Tamil Nadu Marriage Hall Owners Association is facing its own struggles . A. John Amalraj, the state president, revealed that some members have paid as much as ₹10,000 per cylinder during peak wedding seasons. While few caterers suggested using domestic cylinders, he noted that this would constitute illegal diversion. “These past few months have been very tough. A reduction of even ₹1,000 per cylinder would come as great relief for us,” he added.

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