High costs and low awareness limit migrants' access to 5-kg LPG cylinders

Despite the government doubling daily allocations of 5-kg LPG cylinders to stabilize supplies disrupted by the West Asia conflict, high upfront costs, low awareness, and inconsistent availability are keeping them out of reach for migrant workers and students. Of the 1,368 cylinders set aside daily, only about 50-55% are being purchased from Oil Marketing Companies.

The government has doubled the daily allocation of 5-kg LPG cylinders to stabilize fuel supplies disrupted by the conflict in West Asia. These cylinders, known as free trade LPG (FTL), are intended for migrant workers and students.

An official source told The Hindu that although 1,368 such cylinders are set aside daily, only about 50-55% are being purchased from Oil Marketing Companies (OMCs). A 5-kg cylinder refill costs around ₹550 (₹110 per kg), compared to ₹913 for a 14.2-kg domestic cylinder (₹64.2 per kg), making it roughly 71% more expensive per kg.

The initial purchase is steeper at about ₹1,550, including the cylinder and gas. High upfront costs, lack of awareness, and inconsistent availability remain key barriers. Migrant workers in Delhi are struggling to access them.

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Indian market scene with people buying induction stoves amid LPG shortage fears, PM Modi on screen assuring supplies.
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Government assures LPG supplies amid induction stove boom from shortage fears

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As fears of LPG shortages intensify due to West Asia conflict disruptions, the Indian government has assured adequate supplies and cracked down on black-marketing, while induction stove demand continues to surge following the initial rush reported earlier this week. Prime Minister Narendra Modi urged calm, promising to overcome the crisis like during Covid.

The government has doubled the daily quota of 5-kg LPG cylinders for migrant workers amid supply disruptions linked to tensions around the Strait of Hormuz. The Ministry of Petroleum and Natural Gas aims to stabilise fuel supplies with this move. Joint Secretary Sujata Sharma announced the decision via a letter dated April 6.

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The country's liquefied petroleum gas (LPG) supply remains adequate, but the price of an 11-kilo tank is expected to approach P1,500 next month. Arnel Ty of the LPG Marketers Association Inc. said prices will rise by at least P30 per kilo due to higher shipping and contract costs amid the global oil crisis.

The Ministry of Petroleum and Natural Gas has ordered all oil refining companies operating in India to maximise the use of propane and butane streams for LPG production. This LPG will be supplied exclusively to domestic consumers through IndianOil, Hindustan Petroleum, and Bharat Petroleum. The directive aims to protect household users amid global fuel supply challenges arising from the ongoing conflict in West Asia.

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Amid concerns over LPG availability, the Gujarat government on March 20, 2026, clarified there is no cooking gas shortage in the state and urged citizens not to heed rumours. Authorities stated adequate stock is available with smooth distribution systems, including doorstep deliveries to avoid queues at agencies. They promoted technology-driven booking via multiple digital channels for consumer convenience.

As Middle East tensions disrupt gas supplies to India, causing LPG shortages and price hikes, the government's Natural Gas Regulation Order, 2026, prioritizes allocations for essential sectors like fertilizers at 70% of average consumption. This has sparked a surge in fertilizer stocks, with gains up to 17%.

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NCP-SP leader Jayant Patil accused the BJP-led centre and Maharashtra governments of failing to manage LPG shortage amid West Asia conflict. He criticized their refusal to share information and blaming the opposition. Long queues have formed across the state, with Patil urging Chief Minister Devendra Fadnavis to intervene.

 

 

 

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