AC Prices Likely to Rise From April as Production Costs and Supply Issues Increase

Consumers planning to purchase a new air conditioner may want to act soon, as industry sources suggest that AC prices could rise in the coming weeks. Several appliance manufacturers are already reviewing their pricing strategies due to increasing production costs and supply related challenges.

Companies that manufacture air conditioners, refrigerators and washing machines say the cost of producing these appliances has increased significantly. As a result, the industry expects retail prices of many large home appliances to move upward from April.

The early summer season is usually a crucial period for appliance makers. March marks the beginning of strong sales for cooling products, and companies closely monitor demand during this time to plan production and pricing.

Raw Material Costs and Supply Problems

One of the key reasons behind the possible price increase is the rising cost of raw materials. Industry experts say plastic prices have gone up due to global market conditions and geopolitical tensions in West Asia.

Plastic alone accounts for nearly 20 percent of the production cost of appliances such as washing machines. If raw material prices continue to remain high, manufacturers warn that appliance prices could increase by around 10 to 12 percent.

Another challenge affecting production is the reduced supply of LPG to industries. To prioritize domestic cooking gas needs, authorities have reportedly lowered industrial LPG allocation from about 80 percent to nearly 65 percent of regular supply. This has created operational difficulties for several manufacturing units.

Industry representatives say that if the supply situation does not improve soon, companies may have to reduce production of air conditioners by 20 to 30 percent before the peak summer demand.

Impact on Consumers and Appliance Market

Companies have also pointed out that price adjustments have already taken place earlier this year because of new energy efficiency labeling regulations introduced in January. The combination of those changes and rising logistics costs could lead to another round of price revisions in April.

Some brands expect air conditioner prices to rise by around 5 to 10 percent starting from the beginning of the next financial year.

If prices increase, experts believe consumers may shift toward more affordable models or choose products with lower capacity. Rising input costs are not limited to air conditioners alone, and the impact could extend to other major household appliances such as refrigerators and washing machines.