LPG supply disruptions hit multiple Indian cities; 43% households report delays, black marketing surges: Survey

Several Indian cities have seen a spike in consumer complaints over LPG supply disruptions over the past week, with issues ranging from delayed deliveries and shortfall to diversion and black marketing, according to a report by LocalCircles. 

The disruptions are being linked to broader supply constraints amid global uncertainties, particularly tensions in West Asia impacting fuel imports. 

Delays, ‘ghost deliveries’, and local irregularities reported 

In Lucknow and Prayagraj, consumers reported significant delays in cylinder deliveries despite receiving booking confirmations and Delivery Authentication Codes (DAC). Many households said they had to wait up to a week or more, with distributors citing vehicle shortages and irregular supply from oil companies. 

In Bhubaneswar, complaints of “ghost deliveries” surfaced, where cylinders were marked as delivered without actual supply. The issue triggered protests and long queues outside distribution agencies, exposing gaps in monitoring systems. 

Authorities also flagged serious irregularities. In Sitapur, a gas agency was sealed after nearly 800 cylinders were found missing, pointing to possible diversion. In Delhi, police conducted multiple raids, seizing over 1,700 cylinders, and registering FIRs against hoarding and illegal distribution networks. 

Black marketing spikes, consumers pay hefty premiums 

Black marketing has emerged as a major concern across regions. In Pune and parts of Tamil Nadu, LPG cylinders were reportedly sold at several times the official price. Cases of delivery personnel diverting subsidised cylinders for illegal sale have also been reported, indicating systemic leakages in the supply chain. 

The past week’s developments reflect a mix of supply constraints, logistical inefficiencies and malpractice at the distribution level. While the government has maintained that there is no nationwide shortage, persistent local disruptions point to the need for tighter monitoring and improved last-mile delivery. 

Enforcement steps up; cylinders seized 

Oil marketing companies (OMCs) and state authorities have intensified enforcement to curb irregularities. Nationwide crackdowns included thousands of raids, leading to the seizure of over 15,000 cylinders. 

States have launched targeted drives. Chhattisgarh alone seized over 3,800 cylinders, filed multiple FIRs, and set up control rooms to monitor supply. Local administrations have sealed errant agencies, conducted surprise inspections, and reassigned consumers to alternative distributors. 

Police have also busted illegal refilling units and arrested individuals involved in diversion and black marketing. Authorities are tightening delivery authentication systems and revising allocation policies to enhance transparency. 

43% faced delays, 8% turned to black market 

The nationwide survey, based on over 40,000 responses from 311 districts, found that 43% of households experienced delays in LPG supply over the past week. 

Of the 20,179 respondents to a key question, 31% reported no difficulty, while 13% said they could not book cylinders when needed. Around 22% faced delayed deliveries, 18% said they could not get a cylinder at all, and 8% reported purchasing from the black market. 

Another 20,523 respondents indicated steep premiums in the black market. About 72% of those aware of such practices said consumers were being charged between ₹300 and ₹4,000 extra per cylinder. 

Despite assurances from the government and oil companies that domestic LPG supply remains adequate, uncertainty linked to the ongoing Middle East conflict appears to be fuelling panic among consumers. In some cases, households are attempting to stock additional cylinders, further straining local supply.