Copper Prices Surge: ACs and Fridges Get Costlier, GST Reform Benefits Elude Consumers

Recent weeks have seen a significant rise in copper prices, a key component used in air conditioners, refrigerators, fans, and other electronic appliances. The ongoing surge is now directly impacting market prices, causing concern among both retailers and consumers.

Rising Prices in the Electronics Sector

According to industry sources, electrical and electronic goods are experiencing weekly price fluctuations. In January alone, companies manufacturing ACs, refrigerators, and similar appliances have already raised their rates. Analysts predict that items containing copper could see an additional 10% price increase in the coming weeks, effectively offsetting the benefits of last year’s GST reforms.

Vikas Taneja, an electronics retailer from Kamla Nagar Market, explained, “While last year, GST reforms reduced prices on cars, ACs, TVs, and other appliances, making life easier for consumers, the current surge in copper costs is likely to negate these gains.”

How Much Have Prices Increased?

Copper prices have jumped by nearly 40% in the past two months. Where one kilogram of copper was earlier priced at ₹1,000, it now costs approximately ₹1,400. This spike has already prompted manufacturers of ACs, fridges, and fans to revise their rates. Experts expect another 10% increase in retail prices in the near future.

Impact on Consumers and Businesses

The price hike has left both consumers and traders worried. Rajiv Agrawal, a trader from Daryaganj, stated that rising copper costs are putting pressure on businesses and are likely to translate into higher retail prices for end-users. With the peak summer approaching, air conditioners may become around 10% more expensive, adding to household expenses.

The electronics sector, which was initially buoyed by GST reforms, now faces the dual challenge of input cost inflation and consumer price sensitivity, making market dynamics more unpredictable.