Eroding GST relief, higher appliance bills as tougher energy ratings push AC and fridge prices up, while costs rise and consumers rush to beat hikes.
The New Year brings with it higher prices for some household appliances, as stricter energy-efficiency rules came into force on 1 January. Room air conditioners may become up to 10 per cent costlier, while refrigerators could see a price hike of up to 5 per cent. The new norms are part of revised star ratings issued by the Bureau of Energy Efficiency (BEE).
Meanwhile, manufacturers say the cost burden is unavoidable. Companies explain that they need new components and design upgrades to meet tougher standards, as these parts are more expensive. The weaker rupee and higher global copper prices are adding further strain, pushing prices up.
Moreover, BEE has also made QR codes compulsory on labels, which must display full product details for consumers.
Energy rules have tightened significantly. Under the new system, an air conditioner that currently holds a 5-star label will now be classified as 4-star, a 4-star machine will move to 3-star, and so on.
Industry players say next-gen 5-star ACs will save about 10 per cent more electricity, but these units will also cost about 10 per cent more. They will deliver efficiency comparable to what was previously considered a 6- or 7-star level.
The scope of labelling has widened too. Star ratings are now mandatory for televisions, LPG gas stoves, chillers and cooling towers. The aim is to help buyers make informed choices and understand long-term savings.
Earlier, the GST cuts announced in September 2025 on air conditioners had offered relief to buyers. However, companies warn that the fresh increases may wipe out that benefit. Executives estimate immediate hikes of 5–7 per cent for ACs and 3–5 per cent for fridges. Some firms have reported that customers are advancing purchases to beat the new prices.
