A fuel crisis unfolds: Migrants leave Surat as rising costs and gas shortages disrupt daily life, with Ujjwala 2.0 falling short

The ongoing US-Iran conflict has disrupted gas supplies in India, with migrant workers among the worst affected
Surat's powerloom factories are becoming empty.
Surat's powerloom factories are becoming empty. File photo: Raju Sajwan
Published on
Listen to this article
Summary
  • LPG shortages linked to global conflict are forcing migrant workers to leave Surat

  • Many families unable to cook as cylinder supply collapses and prices surge

  • Workers report eating fewer meals, raising concerns over malnutrition

  • Cost of living has sharply increased, with food and fuel expenses rising

  • Gaps in Ujjwala 2.0 and access to gas connections have deepened the crisis

In early March 2026, a geopolitical firestorm erupted in West Asia after United States-Israeli airstrikes on Iran triggered Tehran’s blockade of the Strait of Hormuz — choking a vital global oil route and setting off a chain reaction that has since spiralled into an energy crisis hitting migrant workers in India’s cities the hardest.

“This is the first time we’ve had to leave the city because we can’t find cooking gas. My children and I are returning to the village because our cylinder is finished and we don’t know when we’ll get a new one.”

The helpless words of Shiba Malik, who has lived in Surat, Gujarat’s silk and diamond city,  for two decades, reflect a growing crisis. As LPG shortages deepen, many migrant families are being forced to leave cities and return to their villages.

Malik, originally from Odisha, works with a non-profit supporting powerloom workers. He had come to Surat to help powerloom workers navigate hardship; now, he finds himself standing in the same queue, waiting for relief that hasn’t arrived.

He lives on rent in Surat and received his last LPG cylinder on February 27, 2026. After the crisis worsened, bookings were delayed by over a month. Despite placing an order on April 3, he is yet to receive a refill.

Migrant exodus echoes Covid-era distress

Surat, a major industrial hub for textiles and diamonds, has a large migrant population. A study by the Indian Institute of Management (IIM) Bangalore during the COVID-19 lockdown estimated that around 4.18 million migrant workers live in the city, accounting for nearly 58 per cent of its population.

Most are employed as contract or daily wage labourers in sectors such as textile manufacturing, dyeing, embroidery, construction and diamond cutting and polishing. The return of migrant workers is likely to disrupt these labour-intensive industries in the city, which depend heavily on a steady migrant workforce.

The current situation has drawn comparisons with the COVID-19 lockdown, when large numbers of workers returned to their villages. However, those working closely with migrant communities say this crisis is different and possibly worse.

“This is the first instance of people leaving the city in this manner due to lack of cooking gas,” said Krishna Avtar Sharma, co-founder of Aajeevika Bureau, an organisation working with migrant workers. “Even if supply returns to normal, it will take a long time for the situation to stabilise.”

In several areas, families have already begun leaving. Children were sent back to villages soon after exams ended in March, as parents struggled to manage food and fuel shortages.

While cylinders were earlier available in informal markets for around Rs 1,000, prices reportedly rose to Rs 3,000-4,000 during the crisis. Following stricter enforcement, even these supplies dried up.

Migrant labourers have been coming to Surat for decades, and many families have settled in the city permanently. Ashwin is one of them. His father migrated from Odisha in search of work and stayed on, and Ashwin was born and raised in Surat. He says that while his own neighbourhood has access to piped gas, many other areas depend on LPG cylinders. “In those places, most families from Odisha have returned to their villages because they cannot get cylinders,” he said.

A hostel run by the Surat Workers' Organization, where migrant workers live.
A hostel run by the Surat Workers' Organization, where migrant workers live. File photo: Raju Sajwan

In several areas, families have already begun leaving. Children were sent back to villages soon after exams ended in March, as parents struggled to manage food and fuel shortages.

Many migrant families did not have formal gas connections. During normal supply, cylinders were often available through informal channels. However, after weekly shutdowns disrupted supply, prices rose sharply — from around Rs 1,000 to Rs 3,000-4,000 per cylinder. Following stricter administrative action, even these supplies became unavailable, forcing many migrant families to return to their villages.

Also Read
“Machines are standing still”: Fuel shortages disrupt wheat harvest in Uttar Pradesh
Surat's powerloom factories are becoming empty.

Food insecurity and rising costs

The shortage has triggered a wider crisis. “A major consequence of this crisis will be malnutrition,” said Sharma. Workers who earlier managed three meals a day are now surviving on one or two.

Powerloom workers typically rely on a mix of home-cooked meals and food from roadside eateries, as the sector typically operates on two 12-hour shifts. Workers typically cooked one meal at home, then either packed it for later or relied on street vendors and dhabas operating near the powerloom units. 

But since the gas supply was disrupted, the dhabas were among the first to be affected. But many of these dhabas have either shut down or reduced portions while increasing prices due to the gas shortage.

According to Sharma, no labourer has eaten a full meal in the past two months. Similarly, children of labourers living with their families are also going hungry.

Restrictions in rented accommodation have worsened the situation, with landlords often prohibiting the use of firewood or coal in the rented homes. Eating out has become increasingly expensive, further straining already tight budgets.

The cost of living has risen sharply. Malik says his monthly expenses, excluding rent, have increased from Rs 4,500 to Rs 7,500, largely driven by higher food costs.

Surat also has several private hostels for migrant workers that provide both accommodation and food. However, these too have been affected by the gas shortage. The Pravasi Sharmik Suraksha Manch runs one such hostel on Sayan Sugar Road, where workers are provided food and accommodation for Rs 3,600 per month.

The operator said that in February, the hostel housed around 130 workers, but the number has steadily declined to about 70. Despite repeated requests to the administration, he has not been able to secure adequate gas supply.

Also Read
Gas shortage due to West Asia crisis threatens food security of migrant workers, business of street vendors
Surat's powerloom factories are becoming empty.

Ujjwala scheme gaps exposed

The crisis has also highlighted gaps in access to government support schemes. Migrant workers often struggle to obtain LPG connections due to documentation requirements. The Pradhan Mantri Ujjwala Yojana (PMUY) 2.0 had provisions to ease this, allowing migrant families to apply using self-declaration as proof of address. However, the scheme was not adequately publicised.

Launched by Prime Minister Narendra Modi from Mahoba district in Uttar Pradesh in August, 2021, Ujjwala 2.0 offered deposit-free LPG connections along with a free first refill and hotplates. While 103.3 million connections were distributed nationwide by March 31, 2025, there is little data on how many reached migrant households.

“If this scheme had been properly implemented and promoted with support from organisations working with migrants, the current crisis could have been mitigated,” Sharma said.

Following the supply disruption linked to the conflict, the government had also announced plans to increase availability of smaller 5-kg cylinders. However, as shortages persisted, many migrant workers were left with little choice but to leave cities like Surat and return home.

The crisis underscores how disruptions in basic energy supply can quickly translate into wider economic and humanitarian stress, particularly for India’s most vulnerable workers.

Related Stories

No stories found.
Down To Earth
www.downtoearth.org.in