Consumer activists and distributors are worried that the recent increase in prices of commercial LPG cylinders will lead to illegal diversion of domestic cylinders. In Chennai, the price of one commercial cylinder, which was ₹1,831 last month, rose to ₹2,133 this month.
T. Sadagopan, consumer activist, said such a steep increase would lead to cylinders being sold in the black market. “Already, there are complaints that domestic cylinders are being illegally refilled at fuel outlets. One can see this happening in bunks on the outskirts. It is a dangerous thing and the price increase will lead to diversion of domestic cylinders since they are cheaper. Families that cannot afford to buy domestic cylinders are converting to wood-fired stoves. They will see a good business opportunity in this situation,” he said.
Eateries struggling
A hotel industry source said small eateries were getting back to normalcy after over 18 months.
“Many just vanished overnight due to debts. If they effect such hikes, it would cause a bigger burden on such establishments that are struggling to get back on their feet,” he said, and added that differential pricing for smaller establishments would help.
An LPG dealer said they had suffered enough during the pandemic with small establishments not settling dues. “We provide them with credit as they can pay only after their day’s business. We cannot have nil balance. Such steep hikes would help competitors, especially the private players. They don’t increase on the first of every month but provide some more days for customers,” he said.
