Gas Shortages Push India's Poor Back to Wood and Coal

Why It Matters

Rising LPG costs push vulnerable households back to polluting fuels, worsening health outcomes and derailing India’s climate and air‑quality goals.

Key Takeaways

• LPG black‑market prices doubled, hitting low‑income families.
• Families revert to wood/coal, raising indoor air pollution.
• Migrant workers lack LPG subsidies, rely on informal markets.
• India's LPG imports strained by Middle East conflict.
• Health risks rise as children cough from smoke.

Pulse Analysis

India’s reliance on imported LPG has become a strategic vulnerability as the Middle East conflict disrupts supply chains. The country imports roughly 30 million tonnes of LPG annually, and any interruption reverberates through domestic markets. In Delhi, the black‑market price per 14‑kilogram cylinder surged to about $53, eclipsing the average monthly wage of $63 for many low‑income workers. This price shock illustrates how geopolitical tensions can translate into immediate cost pressures for essential household energy, prompting a rapid shift in consumer behavior.

The surge in LPG costs has forced millions of poor households to revert to traditional fuels such as firewood and coal. These fuels emit high levels of particulate matter, aggravating respiratory illnesses that already afflict a large share of India’s urban population. Migrant workers, who often lack the documentation required for government LPG subsidies, are disproportionately affected and must rely on informal markets where hoarding inflates prices two‑ to three‑fold. The health implications are stark: increased coughing, asthma attacks, and long‑term exposure to toxic smoke, especially for women and children who spend most of their time near cooking areas.

Policy responses must address both supply resilience and subsidy accessibility. While the Ujjwala scheme has connected over 100 million homes to LPG, its impact is muted when market prices soar and eligibility barriers persist. Diversifying energy imports, expanding domestic LPG production, and streamlining subsidy enrollment for migrant workers could mitigate future shocks. Moreover, promoting cleaner alternatives such as biogas or electric induction cookers, backed by targeted subsidies, would help preserve air‑quality gains and protect public health as India navigates an increasingly volatile global energy landscape.