Government Increases Allocation of 5-Kilogram LPG Cylinders for Migrant Workers Amid Supply Constraints

Petroleum Ministry Announces Doubling of Free Trade LPG Cylinders for Migrant Labourers

The petroleum ministry on April 6 announced a significant move to alleviate the LPG crisis affecting migrant labourers. As per the latest order, the quantity of 5 kg Free Trade LPG (FTL) cylinders given to migrant labourers will be doubled based on the average daily number of cylinders supplied during March 2-3.

The 5 kg FTL cylinders will be made available to the State Government or the state's Food/Civil Supplies Department for distribution to migrant labourers in their state with the assistance of public oil marketing companies. This decision aims to mitigate the impact of the LPG shortage on migrant labourers who are returning to their hometowns due to the deepening crisis.

A comparison of the allocation of commercial LPG cylinders can be seen below:

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The LPG shortage has unfolded against a backdrop of rapidly rising input costs, driven largely by crude oil volatility linked to geopolitical tensions. The conflict involving Iran, particularly around the Strait of Hormuz, a critical route through which a significant share of the world's oil and gas shipments pass, has disrupted global energy supply chains.

According to government data, since March 23, about 6.75 lakh 5-kg Free Trade LPG cylinders have been sold. In a statement on April 6, the oil ministry clarified that there is no disruption in LPG supply affecting migrants and that supplies remain stable. Additionally, states may consider managing targeted distribution of 5 kg FTL LPG cylinders, based on local requirements along with OMCs.