Hotels in Kerala Shuts Down Due to Gas Price Hike

3 January 2013

Thiruvananthapuram

With the recent hike in gas prices the Kerala Hotel and Restaurant Association observed a dawn-to-dusk closure of hotels to protest for rise in prices. On January 2, oil companies increased the price of LPG (Liquefied Petroleum Gas) cylinders by rupees 220, one of the sharpest ever hikes aimed at shifting the burden of higher global prices on consumers.

The port city of Kochi in Kerala also protested against the steep price hike announced by petroleum companies as the markets remained closed and agencies distributing LPG cylinders suspended their orders.

The decision comes at a time when oil companies have made it clear that domestic cooking gas consumers, who have not linked their Unique Identification Card Number to LPG connection number and bank account within the given grace period, would not be eligible for subsidized cylinders.

India, the world’s fourth-biggest oil consumer, is considering a 3 rupee to 5 rupee hike in the price of diesel, which accounts for more than 40 percent of fuel use, government officials said last week, as the country looks to cut import costs by nearly USD 20 billion to trim a record current account deficit.

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