57% Indian household consumers surveyed report experiencing LPG cylinder delays and black marketing in the last one week; Report black marketing of INR 100-500 per cylinder as common with rates going up to INR 2800 in some cases

March 13, 2026, New Delhi: Fears of shortages have triggered panic booking and long queues at Liquefied Petroleum Gas (LPG) distribution agencies across the country. Many people in India have also started trying to obtain replacement or extra cylinders even as private companies and distributors have hiked prices of cooking gas. In response, the government has directed oil marketing companies to prioritize LPG supply for domestic consumers while advising states to strictly monitor the situation and prevent hoarding or black marketing.

Concerns about a possible cooking gas shortage have emerged amid the ongoing geopolitical tensions involving the United States, Israel, and Iran. India relies heavily on imported LPG to meet domestic demand. Nearly 80–85% of the country’s LPG requirement is imported, mainly from Gulf nations such as Saudi Arabia, United Arab Emirates, and Qatar. The Middle East remains one of the largest suppliers of LPG, and the conflict has disrupted global energy supply chains.

A major maritime route for oil and gas trade, the Strait of Hormuz, lies in this region. A significant share of global energy shipments passes through this narrow waterway. Any disruption to shipping in the Strait can delay tanker movement and affect fuel supplies to import-dependent countries like India. The ongoing tensions have therefore created fears of supply disruptions. If tanker movements slow down or shipping routes become unsafe, LPG shipments reaching India could be delayed, leading to shortages in the domestic market.

According to media reports, these concerns have already begun to affect consumers in several parts of the country. One immediate impact has been an increase in the waiting time for LPG refills. To discourage panic buying and hoarding, the government has increased the minimum gap between two LPG refill bookings from 21 days to 25 days. This change has created difficulties for households with high LPG consumption, especially large families or homes with only one cylinder.

Delivery delays have also been reported in many areas. Earlier, LPG cylinders were usually delivered within 48–72 hours, but consumers in some cities are now waiting several days for refills. Even before the current concerns, households in certain regions had reported waiting up to a month for the delivery of a second cylinder.

The shortage has also affected the commercial sector. Restaurants, hotels, and street food vendors depend heavily on LPG for cooking. Limited availability of commercial cylinders has forced some businesses to reduce menu options, shift to electric appliances, or temporarily suspend operations.

India’s dependence on LPG has grown significantly in recent years. The country now has over 31 crore LPG connections, and domestic households account for nearly 60% of the total LPG consumption. Government welfare initiatives such as Pradhan Mantri Ujjwala Yojana have played a major role in expanding LPG access among rural and low-income households.

At the same time, the government has been expanding the supply of piped natural gas (PNG) for cooking through city gas distribution networks. However, PNG connections currently reach only around 1.3–1.5 crore households, mostly in major urban centers, which means a large majority of Indian households still depend on LPG cylinders for cooking.

With hundreds of posts and comments being received daily for the last one week, LocalCircles through a nationwide survey sought to find out how consumers are coping with fears of cooking gas shortage and whether they have had to pay extra for getting early supplies. The survey received over 57,000 responses from household consumers located in 309 districts of India. 61% respondents were men while 39% respondents were women. 40% respondents were from tier 1, 27% from tier 2 and 33% respondents were from tier 3, 4 & 5 districts.

53% of household consumers surveyed say LPG dealers have mentioned supply disruption/delay to them in the last one week

In view of many consumers lining up in front of LPG suppliers to get replacement cylinders or striving to book extra cylinders, the survey asked household consumers, “Have LPG dealers in your area mentioned supply disruption / delay issues in the last 1 week?” Out of 19,307 who responded to the question 43% indicated that “no such issue (has been) mentioned” by their dealers; 32% of respondents indicated that the “dealer said supply may be delayed”; 21% of respondents indicated that their “dealer said supply shortage currently exists” and 4% of respondents did not give a clear answer. To sum up, 53% of household consumers surveyed say LPG dealers have mentioned supply disruption/delay to them in the last one week.

57% household consumers surveyed report experiencing LPG cylinder delays and black marketing in the last one week

Given the pictures of big crowds outside LPG dealers’ outlets in media, the survey asked consumers, “In the last 7 days, have you faced any difficulty booking or receiving a domestic LPG cylinder?” The question received 18,798 responses with 43% indicating that they had “no difficulty – booking and delivery normal”; 7% of respondents indicated that they “had to wait longer than usual for delivery”; 29% of respondents indicated that “dealers said cylinder not available/ booking delayed”; 7% of respondents indicated that they “had to follow up multiple times to get delivery”; and 14% of respondents indicated that they “had to buy LPG cylinder from black market at higher price”. To sum up, 57% of household consumers surveyed reported experiencing LPG cylinder delays and black marketing in the last one week.

36% household consumers surveyed who are experiencing LPG black marketing in their area say suppliers/middlemen are charging an extra amount of INR 100-500 per cylinder

Consumers have been sharing on social media that they have had to shell out extra Rs. 100 – 500 or more per cylinder in the open market from where they normally get replacement cylinder. In some instances, people are reporting paying 2-4 times the price of the cylinder ranging between Rs. 1500-2500. To understand the magnitude of black marketing, the survey asked consumers, “If you or someone in your neighborhood had to buy LPG outside the official system, how much extra was charged per cylinder?" Out of 19,769 consumers who responded to the question 39% indicated “no black market purchase in our household/ neighborhood” is undertaken; 8% of respondents indicated that they had to shell out “up to INR 100 extra per cylinder”; 11% of respondents indicated that they had paid “INR 100-300 extra per cylinder”; 8% of respondents indicated that they had paid “INR 300- 500 extra per cylinder”; 9% of respondents indicated that they had paid “more than INR 500 extra per cylinder”; and 25% of respondents did not give a clear answer. To sum up, 36% household consumers surveyed who are experiencing LPG black marketing in their area say suppliers/middlemen are charging an extra amount of INR 100-500 per cylinder.

In summary, despite government efforts to calm the consumers and ensure smooth supply of cooking gas, profiteering by some has already distorted the market. As the survey results indicate, 53% of household consumers surveyed say LPG dealers have mentioned supply disruption/delay to them in the last one week. In fact, 57% of household consumers surveyed report experiencing LPG cylinder delays and black marketing in the last one week. The impact is that 36% household consumers surveyed who are experiencing LPG black marketing in their area say suppliers/middlemen are charging INR 100-500 extra per cylinder but 9% of them also are paying over INR 500. Cases have emerged in Delhi-NCR where some gas agencies are charging as much as INR 1500-2800 per cylinder.

LocalCircles plans to share the survey results with the relevant Government stakeholders seeking immediate intervention such that profiteering and black-marketing can be addressed at the earliest.