LPG Gas Crisis: Workers Migration in India
India is facing an acute LPG shortage triggered by geopolitical tensions closing the Strait of Hormuz, severely impacting migrant workers who rely on affordable cooking gas. This has led to widespread reverse migration as workers return to villages where alternatives like biomass are available.
Crisis Causes
The shortage began in early March 2026 due to Iran closing the Strait of Hormuz after military strikes by the US and Israel, disrupting 90% of India’s LPG imports. India depends heavily on imports for LPG, with domestic production unable to meet rising demand from over 33 crore households. Tanker premiums surged over 500%, causing weekly inflows to drop 30%.
Worker Migration Impact
In Surat, Gujarat, migrant workers face gas at Rs 500/kg, unaffordable amid factory shutdowns, prompting long queues at railway stations to return home. Sectors like restaurants in Chennai and Kerala, auto components, ceramics in Morbi, and hospitality see early departures, accelerated by elections in Assam and West Bengal. In Maharashtra and Bengaluru, rising food prices from shortages force truck drivers and laborers back to native states.
Affected Regions and Sectors
Authorities invoked emergency powers under the Essential Commodities Act, directing refiners to maximize LPG output for households by diverting propane/butane from petrochemicals. Domestic production rose 40%, prioritizing homes over industry; over 13,700 PNG connections released to ease pressure. States urged to monitor hoarding; situation remains worrisome for commercial users.
