What is the story about?
LPG Crisis: Reports of LPG cylinders being sold in the black market are emerging from several parts of India as the Middle East conflict disrupts global
energy supply chains. The war involving Iran and Israel has affected fuel shipments from the Gulf region, triggering supply concerns and panic buying in some Indian cities. According to market reports, shortages have pushed LPG prices sharply higher in the black market. Many street vendors in Delhi-NCR are struggling to find cooking gas cylinders even at the higher prices and are forced to either curtail their businesses or completely shut them down.
| Cylinder Type | Official Price (Approx.) | Black Market Price (Reported) |
|---|
| Domestic LPG (14.2 kg) | ₹900 – ₹950 | ₹1,200 – ₹2,000 |
| Commercial LPG (19 kg) | ₹1,500 – ₹1,700 | ₹2,500 – ₹5,000 |
Also Read: Kolkata's LPG Black Market Booms as Panic Buying Doubles Bookings Overnight
Because essential services such as hospitals and schools are being prioritised for gas supply, several restaurants have reportedly been forced to either buy domestic cylinders illegally or pay very high prices for commercial cylinders — sometimes Rs 3,200 to Rs 5,000 per cylinder.
Panic Buying Adds to Shortage
Fear of a possible supply disruption has also led many households to book LPG refills earlier than usual. This sudden surge in demand has put additional pressure on the supply chain and allowed illegal traders to sell cylinders at inflated prices.
Cities such as Mumbai, Bengaluru, Kolkata, and Bhubaneswar have reported long queues at LPG agencies, while some restaurants say they have temporarily shut operations due to lack of cooking gas.
Government Steps to Control Black Marketing
To stop hoarding and black marketing, the government has taken several steps.
Authorities have invoked the Essential Commodities Act to monitor supply and prevent illegal trading of cylinders.
Oil companies have also introduced a 25-day gap between domestic LPG bookings so that households cannot book multiple cylinders within a short period.
At the same time, refineries have been asked to increase production for domestic consumption.
Government Says There Is No Need to Panic
Despite reports of shortages, officials say India has adequate LPG supplies and people do not need to panic.
The government is also looking for additional LPG supplies from countries such as Algeria, Australia, Canada, and Norway to ensure smooth availability.
LPG Prices Recently Increased
Earlier this month, LPG prices were raised across India.
- Domestic 14.2-kg cylinder price increased by Rs 60
- In Delhi, the price reached about Rs 913
- Commercial 19-kg cylinders increased by about Rs 114–Rs 115, taking the price in Delhi to around Rs 1,883
Oil marketing companies usually revise LPG prices every month depending on global fuel costs.
| City | LPG Price (₹ per 14.2 kg cylinder) |
|---|
| New Delhi | ₹913.00 |
| Mumbai | ₹912.50 |
| Kolkata | ₹939.00 |
| Chennai | ₹928.50 |
| Bengaluru | ₹915.50 |
| Hyderabad | ₹965.00 |
| Chandigarh | ₹922.50 |
| Gurugram | ₹921.50 |
| Noida | ₹910.50 |
| Bhubaneswar | ₹939.00 |
| Jaipur | ₹916.50 |
| Patna | ₹1,002.50 |
Why the Middle East Crisis Matters for India
India depends heavily on imported LPG. The country imports nearly two-thirds of its LPG requirement, and most of these shipments come from Gulf nations such as United Arab Emirates, Qatar, Saudi Arabia, and Kuwait.
Most of these cargoes pass through the Strait of Hormuz, one of the world’s most important energy shipping routes.
About 80% of India’s LPG imports travel through this narrow waterway.
With tensions rising in the region, shipping routes have become riskier. War-risk insurance costs for tankers have increased and some cargo shipments are being delayed or diverted.
Analysts warn that if the situation continues, LPG supplies could tighten further, which may push cooking gas prices higher in the coming weeks.
