India's Commercial LPG Price Hike Sparks Fears of Reverse Migration

The 5-kg free trade LPG cylinder, used primarily by migrant labourers and students living near educational institutions, jumped from ₹549 to ₹810.50.| India News

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Fuel costs for migrant workers, community kitchens, canteens, roadside dhabas and industrial users surged by over 47% on Friday as state-run oil companies raised prices of commercial liquefied petroleum gas by ₹993 per 19-kg refill and ₹261.50 per 5-kg cylinder.

The 19-kg commercial LPG cylinder — used by hotels, dhabas, canteens and industrial kitchens — now costs ₹3,071.50, up from ₹2,078.50. The 5-kg free trade LPG cylinder, used primarily by migrant labourers and students living near educational institutions, jumped from ₹549 to ₹810.50.

At least three sector experts said the commercial LPG user base was not homogeneous — and that not all of them could absorb the price shock or pass it on to customers.

Worst affected are migrant labourers, who may return to their villages where firewood is far cheaper than the 5-kg cylinders many already procure from the black market at a premium.

“There could be a reverse migration if the fuel cost does not make any economic sense for them, which will adversely impact construction and manufacturing,” one of them said.