US‑Iran War Causes Cost Escalation for LPG, Essentials, Construction Materials
He said the export sectors started feeling the pressure due to higher freight rates, shipping uncertainties.
Vijayawada:The ongoing US-Iran conflict has caused escalation in prices of essentials like LPG and construction materials like cement, steel, UPVC pipes, ceramics etc, causing concern to the people.
The cost of a commercial LPG cylinder has been increased by Rs 195. It now costs Rs 2,200. Though there are claims that these cylinders are made available to meet upto 70 per cent of the requirement against the earlier 20 per cent, by the central government, they are not available. Such cylinders are finding their way to the black market, the prices thus escalating to Rs 3,000 to Rs 3,500 and more per cylinder-fill.
Hoteliers are facing a tough time to run the eateries and serve food to the customers. AP hotels association president Srinivasa Rao said, “We are unable to run our business given the escalation of cost of commercial LPG and other essentials.”
The cost of cement has gone up ranging from a minimum of Rs 20 to `Rs 60 per a 50kg bag for both budget and premium brands. So is the case with the steel, electric wires, ceramics, plastics, PVC pipes and even hardware, with price tags rising from 20 to 35 per cent.
This resulted in a rise in the prices of flats causing more financial burden to home buyers.
Builder Anala Chanti said, “The cost of all construction materials has gone up and this is resulting in a cost escalation for construction of buildings and a rise in price of the flats/buildings.”
However, there is some relief where the cost of sand and metal remains unaffected so far, but their cost is expected to rise given shortage of fuel and rise in labour cost.
AP chamber of commerce and industry federation president P Bhaskar said, “We are witnessing visible inflationary trends in the market due to the ongoing war. The rise in prices of crude oil and gas are pushing up the cost of LPG, fuels, cement, steel and other construction materials.”
He said the export sectors started feeling the pressure due to higher freight rates, shipping uncertainties.
Meanwhile, the disruptions in the Gulf logistics were affecting the exports of agri commodities, aqua products and processed foods from AP.