Daijiworld Media Network - Chennai
Chennai, May 3: Students and working professionals living in hostels and paying guest (PG) accommodations across Tamil Nadu are set to face higher monthly expenses, with operators announcing an average rent hike of around 10% from May 5.
The decision comes in response to rising operational costs, particularly a sharp increase in commercial cooking fuel prices, especially 19-kg LPG cylinders, which have significantly impacted hostel kitchens that serve large numbers of residents.
According to a state-level association of IT hostel and PG owners, the revised tariff structure has been standardised for non-air-conditioned rooms. Four-sharing rooms will now cost between Rs 6,500 and Rs 7,500 per month, three-sharing rooms between Rs 7,000 and Rs 8,000, and two-sharing rooms between Rs 8,000 and Rs 9,000. Actual prices may still vary depending on location, facilities, and demand.
Operators say the steep rise in cooking gas prices has been the primary driver of the hike. In recent months, commercial LPG rates have reportedly more than doubled, placing significant pressure on hostel kitchens that rely heavily on bulk food preparation.
Some operators also noted that supply shortages have forced them to source cylinders at higher unofficial rates. Earlier attempts to control costs by switching to alternatives such as firewood have also become unsustainable due to rising prices of substitute fuels.
As a result, many establishments have begun passing on the increased burden to residents through higher rents and reduced services, including scaled-back meal options.
Tamil Nadu is estimated to have over 20,000 hostels accommodating nearly 20 lakh people, with Chennai accounting for a large share of this population.
The impact is already being felt by residents, many of whom now depend more on outside food or packaged meals, further increasing their monthly expenditure. Some hostels have also introduced additional maintenance charges to offset rising costs.
With no immediate relief in fuel prices in sight, industry stakeholders suggest that accommodation costs are likely to remain elevated in the coming months, raising affordability concerns for a large segment of urban tenants in the state.