Even as the Maharashtra government maintains that supplies remain adequate, commercial LPG prices in parts of the state’s key industrial belt have touched ₹500 per kg as against the official price of around ₹106.8 per kg. The sharpest impact has been seen in clusters such as Talegaon, Chakan and Pimpri-Chinchwad.

The surge extends to smaller “chotu” cylinders widely used by migrant households. This reflects a combination of global supply pressures and localised distribution bottlenecks.

Some units in the Chakan belt that rely on LPG-fired ovens are exploring a shift to diesel to contain costs. While this offers short-term relief, it raises concerns around efficiency and emissions.

“In some pockets, LPG is being accessed at nearly ₹500 per kg,” said Chandrakant Alsundkar, an industrial relations expert based in Talegaon. He pointed to price distortions in informal and small-scale supply channels.

Factories in nearby areas without piped natural gas (PNG) connections are facing significant production disruptions, he added, with some units cutting output by as much as half. “We are seeing a shift towards diesel-fired ovens, and in some cases, industrial units have reduced production and shifts to keep costs under control,” he said.

With costs climbing, Alsundkar warned of potential labour disruption that could impact auto hubs housing companies such as Bajaj Auto, Mahindra & Mahindra and Hyundai. These units depend on migrant workers for support roles including drivers, cleaners and other blue-collar jobs.

“Migrant workers, who typically receive their salaries after the 7th of each month, are currently managing expenses cautiously. But once salaries are credited, several may consider returning to their home states due to the rising cost of living. The affordability crisis could intensify in the coming weeks if prices remain elevated,” he said.

The state government, in a statement issued jointly with oil marketing companies on Monday, said about 70 per cent of commercial LPG supply is currently available and is being restored in phases. Domestic supply remains stable at around 5.8 lakh cylinders a day, it said, adding that smaller 5 kg and 7 kg cylinders are being distributed to improve last-mile access.

However, the gap between official supply data and local price spikes points to a deeper problem: macro-level availability is not translating into affordability on the ground. Industry associations have flagged concerns over last-mile distribution delays and possible hoarding, even as officials maintained that the supply network remains robust.

“Local-level black marketing is distorting the availability of commercial LPG. Even the 5 kg ‘chotu’ cylinders used by migrant workers for cooking have become expensive,” Alsundkar said, pushing back on the government’s assertion that workers’ requirements are being adequately met.

Published on April 7, 2026