Sharp commercial LPG price hike hits migrant workers, eateries and small businesses

A steep increase in commercial fuel prices has significantly raised costs for migrant workers, roadside eateries, community kitchens and industrial users, after state-run oil marketing companies sharply revised rates for commercial LPG, bulk diesel and aviation turbine fuel.

The biggest impact comes from the nearly 48% hike in commercial LPG prices.

The price of a 19-kg commercial LPG cylinder — widely used by hotels, dhabas, canteens and industrial kitchens — has jumped by ₹993 to ₹3,071.50 from ₹2,078.50.

The smaller 5-kg free trade LPG cylinder, commonly used by migrant labourers, students and small vendors, now costs ₹810.50, up ₹261.50 from ₹549.

More fuel revisions from May 1

Public sector oil firms have also raised:

• Aviation turbine fuel (ATF) for international airlines by 5.3%, to $1,511.86 per kilolitre
• Bulk diesel by 8.75%, from ₹137 to ₹149 per litre

Bulk diesel is used by sectors including railways, state transport services, telecom towers, construction, mining and agriculture, and is not sold at retail pumps.

Pressure on migrant workers and small vendors

The sharp increase is expected to hit vulnerable groups the hardest.

Industry experts warn that higher 5-kg cylinder prices could trigger reverse migration, as many migrant workers may find urban living financially unsustainable.

Workers interviewed on the ground echoed those concerns.

For many groups sharing rented accommodation, the revised prices have made cooking fuel unaffordable.

Small food vendors are also under pressure, with some reporting that black-market refill prices had already surged well before the official hike.

Many say raising food prices is not an option because it risks losing customers.

Govt says household consumers unaffected

Indian Oil Corporation said domestic LPG prices for more than 330 million household consumers remain unchanged.

The company said around 80% of petroleum products — including regular petrol and diesel sold at retail pumps — have seen no price revision.

According to the company, the hike is limited to bulk diesel, commercial LPG and international ATF, which together account for less than 1% of overall fuel consumption and are revised monthly based on global benchmarks.

Govt cites global crude shock

Petroleum Minister Hardeep Singh Puri defended the move, saying oil marketing companies had absorbed earlier crude price shocks to protect retail consumers.

He noted that crude prices have surged over 50% in the past two months amid escalating tensions in West Asia and disruption around the Strait of Hormuz.

Global oil prices have climbed from $72.87 per barrel before the conflict to over $110 this week, although prices eased slightly on Friday after reports of fresh diplomatic outreach by Iran.

Despite that pullback, markets remain volatile, with continued geopolitical uncertainty keeping pressure on fuel costs.