LPG shortage hits AC production in India
If you're planning to buy an air conditioner this summer, here's a heads-up: India's air conditioner makers are struggling with a liquefied petroleum gas (LPG) shortage, just as demand is about to peak.
The government is prioritizing household LPG due to global tensions and supply chain hiccups, so there's less left for factories that build air conditioners.
Price hikes imminent
To keep production going, some companies are switching to oxy-acetylene for brazing, but that brings its own headaches since it relies on imports from West Asia.
Plus, the weak rupee and new efficiency rules are pushing costs up even more.
As a result, brands like LG have already hiked room air conditioner prices by about 10% (and applied a 5% increase across other product categories), and some models or segments may face larger increases, so don't be surprised if your next air conditioner costs a bit more.