LPG shortages deepen, black market activity rises: Report

A nationwide survey by LocalCircles shows that access to LPG cylinders has worsened over the past week, with more households reporting delays, higher prices, and fraudulent activity.

“68% household consumers surveyed report experiencing LPG delays in the last one week as compared to 57% in the previous week,” the report said. It added that “20% bought in the black market as compared to 14% the week before.” 

The survey received over 57,000 responses from 328 districts across India. 

Delays rise as supply and system gaps persist

Detailing the nature of the problem, the report said “40% of respondents indicated that they had to wait longer than usual for delivery,” while “8% of respondents indicated that the dealer said cylinder not available/booking delayed.” It added that “28% indicated no difficulty – booking and delivery normal.”

Explaining the reasons, the report said that “persistent gaps in enforcement, digital infrastructure, and supply chain management continue to create significant hardships for households.” It further noted that “supply shortages and panic buying have created opportunities for illegal sellers to charge exorbitant prices.

The report also stated that “diversion of subsidised domestic LPG cylinders for commercial use” is reducing availability for households. 

Highlighting system issues, it said “technical glitches, server crashes, and heavy demand often disrupt booking platforms,” and in some cases “orders are either not processed or incorrectly marked as ‘delivered’ even when the cylinder has not reached the consumer.”

 The report added that “long waiting periods, unresponsive distributors, and the need to stand in queues despite prior bookings highlight ongoing inefficiencies.”

Black market prices rise, fraud cases reported

On pricing, the report said “black market premium now ranges from ₹300–₹4000 per cylinder,” adding that in extreme cases cylinders “have reportedly been sold in the black market for ₹3,500–₹6,500.” 

It also noted that “53% household consumers surveyed who are aware of LPG black marketing in their area say suppliers/middlemen are charging anywhere between ₹300 - ₹4000 extra per cylinder.” 

 Citing an example, the report mentioned a case where residents in a housing society “paid ₹5000 each for two LPG cylinders” for a community event. 

 On fraud, the report stated that “12% household consumers surveyed report receiving a fraudulent LPG cylinder booking & delivery message in the last one week,” adding that such cases involve “fraudulent booking for replacement cylinder… thereby depriving them of a refill when required.”

It further noted that “fake websites or circulating scam links” are being used by cybercriminals to exploit the situation.

The report stated that “more consumers are facing the pinch of LPG cylinder shortage not only because of limited supply and delays, but many have had to pay higher than the actual price.”