According to a local survey report supply disruptions and delivery gaps push households towards illegal LPG channels, with consumers paying steep premiums amid growing black market activity
A sharp rise in LPG supply disruptions across multiple Indian cities has triggered a parallel surge in black market activity, forcing households to pay hefty premiums to secure cooking gas, according to Local Survey reports.
A nationwide survey reveals that while 43 per cent of households experienced delays or difficulties in booking and receiving LPG cylinders over the past week, a significant section has turned to illegal channels. Nearly 1 in 10 consumers reported purchasing cylinders in the black market, often at steep markups ranging from Rs 300 to as high as Rs 4000.
The supply crunch linked to global disruptions and West Asia tensions has exposed gaps in last-mile delivery, creating fertile ground for diversion and hoarding. In cities like Lucknow, Prayagraj, and Bhubaneswar, consumers reported long waiting periods, “ghost deliveries,” and an inability to secure cylinders despite confirmed bookings.
These inefficiencies have directly fuelled black market networks. In Pune and parts of Tamil Nadu, cylinders meant for domestic use were allegedly diverted and resold at inflated prices. Delivery personnel and middlemen have been flagged in several cases, pointing to systemic leakages within the distribution chain.
Enforcement agencies have intensified crackdowns, with thousands of raids conducted nationwide and over 15,000 cylinders seized. Police have busted illegal refilling units, while state governments have sealed errant agencies and filed multiple FIRs. However, the persistence of black marketing suggests that enforcement alone has not been enough to curb the practice.
Survey findings further highlight the scale of the issue that only 72 per cent of respondents aware of black market activity in their area said consumers were being charged premiums between Rs 300 and Rs 4000 per cylinder, with some even reporting higher rates.
Additionally, 13 per cent of households said they were unable to even place bookings when needed. In contrast, others reported being completely unable to access LPG through official channels, further pushing demand into informal markets.
According to the survey, despite assurances from the government and oil marketing companies that there is no nationwide shortage, ground-level realities indicate otherwise. Panic buying, supply bottlenecks, and weak monitoring mechanisms continue to sustain a thriving black market ecosystem.
