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.
Public sector oil marketing companies also raised aviation turbine fuel prices for foreign airlines from May 1. ATF for international carriers was raised by $76.55 per kilolitre to $1,511.86 per KL, a 5.3% increase. Bulk diesel prices were raised 8.75%, from ₹137 per litre to ₹149, for bulk buyers including railways, state roadways, telecom towers, and infrastructure, construction, mining and agriculture sectors. Bulk diesel is not sold at retail pumps.
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.
The price changes brought back focus on energy costs with fears that dearer gas could be a precursor to increases in prices of petrol and diesel -- a move that the government denied was being considered till as recently as Tuesday.
At least three sector experts, pointing to uncertain global energy supply and price volatility since the West Asia war broke out on February 28, 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. At least in their village, they have the guarantee of MGNREGA,” one of them said, requesting anonymity.
On the ground, workers HT spoke to supported the possibility. Chandan Poddar, a 25-year-old painter sharing a rented room in northwest Delhi’s Prem Nagar with nine other migrant workers, said his group had already been spending close to ₹3,000 collectively on 5-kg cylinders every month — and the latest increase had broken the economics entirely. “It just seems like we are being pushed to move back to our villages. We are daily wage earners and we can’t afford to waste an entire day trying to get the small cylinder refilled every few days,” he said.
In Sarojini Nagar, 21-year-old Sumit Chaudhary, who runs a momo stall, said black market prices for the 5-kg cylinder had already surged from ₹100 per kg before the shortage to ₹350-400 now. “We do not have the option of increasing prices, as customers will simply choose not to come here. I am afraid we might have to stop running the stall,” he said.
India’s largest fuel retailer, state-run Indian Oil Corporation, said on Friday that LPG rates for domestic consumers — over 330 million household kitchens — had not been raised. “Overall, approximately 80% of petroleum products have witnessed no change in prices, including regular petrol and diesel, ensuring stability for the majority of consumers,” it said. Price revisions had been confined to bulk and commercial LPG cylinders, bulk diesel and international ATF — categories that together constitute less than 1% of total consumption and are subject to monthly revision against international benchmarks, it said.
Petroleum minister Hardeep Singh Puri, speaking at the Vibrant Gujarat Regional Conference in Surat, defended the OMCs. “When crude prices moved sharply upward, our oil marketing companies carried under-recoveries and shielded consumers. We kept the kitchen fire in 33 crore kitchens burning through thoughtful allocation,” he said. He added that despite massive crude price fluctuations over the past four years, and a surge of over 50% in the past 60 days due to the Hormuz closure, retail petrol and diesel prices had not been raised.
International oil prices have spiked from $72.87 per barrel before the West Asia war broke out to $110.40 on Thursday — a rise of over 51.5%. Brent was trading at $107.31 per barrel on Friday evening. India is the world’s third-largest crude consumer after the United States and China, importing over 88% of the crude it processes.
Crude markets swung sharply on Friday after Iran sent a fresh negotiation proposal to US mediators via Pakistan, pulling Brent futures down from a high of $126.41 a barrel on Thursday — their highest since March 2022 — to $108.78 by evening. “This Iran proposal has given hope to the market that there is an off-ramp for the United States,” said Phil Flynn, senior analyst at Price Futures Group, Reuters reported.
Both benchmarks remained on track for weekly gains, however, with Tehran still blocking the Strait of Hormuz and the US Navy intercepting Iranian crude exports — with no lasting end to the conflict in sight.
