LPG shortage: Middlemen, gas agencies push ₹900 LPG cylinders to ₹2,800, reveals survey
A recent survey indicates that over half of Indian households are experiencing disruptions in cooking gas supply, prompting some to turn to the black market. Meanwhile, the government is prioritizing LPG for domestic use and extending booking intervals.
More than half of Indian households said they are facing disruptions in cooking gas supply. Some even said they had to turn to the black market to procure cylinders in the past week amid a shortage of Liquefied Petroleum Gas (LPG) cylinders in the country, a survey by LocalCircles found.
The consumers surveyed also reported that suppliers and middlemen in their areas are charging an extra ₹100 to ₹500 per cylinder. Meanwhile, cases have emerged in Delhi-NCR where some gas agencies are charging as much as ₹1,500-2,800 per cooking gas cylinder, almost double the usual price.
An LPG cylinder in India costs between ₹900 and ₹1,000, whereas a commercial gas cylinder costs between ₹1,800 and ₹2,200, according to data from OMCs.
As a result, many Indian households are scrambling to find alternative cooking options, relying on appliances such as induction cooktops. Meanwhile, restaurants have warned that disruptions in gas supply could force them to reduce menu options, raise prices, or even temporarily shut operations.
Is everyone facing issues in booking LPG cylinders?
The survey, which received responses from around 19,000 people, found that 43% reported no difficulty in booking LPG cylinders for their home, with deliveries arriving as usual.
The remaining respondents indicated they had to wait longer than usual. Some people also complained that they had to buy an LPG cylinder from the black market at higher prices, the survey found.
On Thursday, senior Delhi Police officials directed their officers to prepare a list of gas agencies in their respective jurisdictions and deploy personnel to maintain law and order, according to Hindustan Times. The move aims to ensure smooth distribution of LPG cylinders and prevent any attempt at black marketing during the supply crunch, police said on Thursday.
The disruptions in LPG supply are being caused by the ongoing conflict involving US and Israeli forces against Iran, which has led to instability and partial closures in the Strait of Hormuz. It is a key sea route through which India gets 85-90% of its LPG imports from West Asian nations, including Saudi Arabia and Qatar.
What is the government doing to handle the situation?
India is in its fourth consecutive day of LPG shortages, with disruptions reported across major cities, including Mumbai, Bengaluru, Kolkata and Chennai.
In response to the growing panic, the government has directed oil marketing companies to prioritize LPG supply to domestic consumers while advising states to monitor the situation and prevent hoarding or black marketing.
New Delhi invoked the Essential Commodities Act (ECA) to prioritize household LPG over commercial users. Meanwhile, refineries are operating at full capacity and are directed to supply increased production exclusively to domestic consumers. Additionally, the LPG cylinder booking interval has been extended from 21 to 25 days to prevent hoarding, as per media reports.
About the Author
Eshita Gain is a digital journalist at Mint, where she joined in May 2025. She writes on corporate developments, personal finance, markets, and business trends, with a focus on delivering timely and relevant stories to a broad audience. <br><br> While her core beat lies in business and finance, she is not confined to a single niche and frequently explores stories across domains, including international relations and policy developments. <br><br> She holds a postgraduate diploma in business and financial journalism by Bloomberg from the Asian College of Journalism (ACJ), Chennai. During her time there, she received rigorous training in tracking financial data, interpreting corporate filings, and reporting on business developments. She has pursued her graduation from St. Joseph’s University, Bengaluru in a multi-disciplinary course. Her majors included Journalism, International Relations, peace and conflict studies. <br><br> Eshita has previously worked in digital marketing, which enables her to write SEO friendly copies that are clear and engaging. <br><br> Her primary interest lies in breaking down complex subjects and writing clear, accessible copies that inform readers. She aims to bridge the gap between technical financial language and everyday understanding. Outside the newsroom, Eshita enjoys reading non-fiction, and exploring new places, constantly seeking fresh perspectives and stories beyond headlines.