The ongoing conflict in the oil-rich West Asian region is affecting households in Tamil Nadu as prices of packaged drinking water have surged. This increase is due to rising input costs linked to petroleum-based materials, particularly plastic raw materials used in manufacturing containers. Residents relying on 20-litre water cans and bottled water for daily needs are experiencing the impact, with prices escalating significantly.
Industry sources highlight that the cost of PET, a petroleum derivative crucial for making bottles and containers, has spiked because of supply constraints. Consequently, the price of a new 20-litre bubble-top container has risen notably, along with increased costs for accessories like caps. Manufacturers have responded by raising the prices of 20-litre water cans by approximately Rs 5, with some major brands implementing hikes of up to Rs 10 per can. Similarly, the price of bottled water has also seen a surge, with a case now costing Rs 20 to Rs 30 more than before.
Tamil Nadu, home to about 1,500 packaged drinking water units serving nearly 15 lakh consumers reliant on 20-litre cans, faces challenges due to limited plastic container manufacturers, leading to supply shortages. Each unit requires a consistent supply of new containers weekly, making the sector vulnerable to disruptions in raw material availability. Retailers in various parts of Chennai and other cities are passing on the increased costs to consumers, with a 20-litre can that previously cost around Rs 20 now priced at Rs 25 in many places, hinting at potential further price hikes.
Urban households are feeling the strain as monthly expenses on drinking water rise, compounded by increasing delivery charges. Industry observers caution that any upward revision in petrol or diesel rates could further escalate costs due to higher transportation expenses, adding to the burden on consumers.
