LPG crisis deepens across India as war fears trigger panic buying, black marketing and supply chaos

LPG crisis deepens across India as war fears trigger panic buying, black marketing and supply chaos

Winning Bizness Desk

Mumbai.Long queues, highway jams and rising panic buying marked the deepening LPG crisis across several states on Sunday as fears triggered by the United States–Israel conflict with Iran disrupted gas supply across India. From Madhya Pradesh and Uttar Pradesh to Rajasthan, Bihar, Punjab-Chandigarh and Haryana, people lined up outside gas agencies and warehouses since early morning hoping to secure cylinders. The shortage has also triggered large-scale black marketing, with domestic LPG cylinders priced at Rs 950 officially being sold illegally for as high as Rs 3,500, while commercial cylinders costing around Rs 2,000 are reportedly being sold for nearly Rs 5,000 in several places.

Situation turns chaotic in Uttar Pradesh

In Uttar Pradesh, the crisis entered its sixth day with residents struggling to get cylinders even after booking them online. Long queues were seen outside gas agencies across cities including Lucknow and Kanpur. At one agency in Kanpur, angry customers created a commotion after a notice reading “No gas available today” was put up around 9 am. Police were called to the spot to control the situation and pacify the crowd. In Lucknow, authorities seized 88 cylinders from a resort suspected of hoarding supplies during the shortage.

Key developments reported in the state include

  • Gas agencies reporting delayed supply despite confirmed bookings
  • Police intervention required at multiple agencies following protests
  • Seizure of 88 cylinders during raids on suspected hoarders

Rajasthan faces queues for both LPG and CNG

Rajasthan is witnessing similar distress as households struggle to cook due to the shortage of LPG cylinders. Outside gas depots and agencies, long lines of customers have been reported since morning, with heated arguments between customers and staff becoming common. The crisis has now spread to CNG stations as well, where auto-rickshaws have formed queues stretching nearly a kilometre in some cities. Many drivers reportedly spent the entire night waiting outside fuel stations, yet several returned without getting sufficient LPG or CNG.

Bihar residents line up before sunrise

In Bihar, the shortage continues to intensify with people standing outside gas agencies from as early as 4 am. In Bihta near Patna, long queues were visible before sunrise as residents tried to secure cylinders. In Danapur and Bagaha, angry residents blocked roads after gas cylinders arrived but were not distributed. Authorities had to intervene to clear the blockade and restore traffic movement.

Other developments reported during the crisis include

  • Residents queuing outside agencies before dawn
  • Road blockades triggered by delayed cylinder distribution
  • Increasing public anger over irregular supply

The shortage has also led to theft and illegal sale of cylinders in several regions. In Barnala in Punjab, a tea vendor reported that his cylinder was stolen from his roadside stall while he stepped away briefly to deliver tea nearby. Meanwhile, in Ferozepur, a video surfaced showing a domestic cylinder being sold without booking for Rs 1,600, sparking allegations of black marketing.

New rules issued amid worsening gas crisis

The Union Petroleum Ministry has introduced new rules to manage limited LPG supplies as the crisis deepens. Under the revised guidelines, households with an active Piped Natural Gas connection will no longer be eligible to keep or refill LPG cylinders. The government said the decision aims to prioritise cylinders for households that do not have access to PNG supply.

Major changes introduced include

  • Households cannot keep both PNG and LPG connections simultaneously
  • Consumers with active PNG connections cannot book LPG refills
  • Those having both connections must surrender LPG cylinders immediately
  • PNG users will not be eligible for new LPG connections

The government has also revised booking intervals multiple times over the past week. On March 6, the lock-in period between LPG bookings was increased to 21 days. On March 9, it was raised to 25 days in cities due to rising demand. On March 12, rural areas saw the booking gap extended to 45 days.

Supply relief expected from incoming shipments

Officials say relief may arrive soon as two Indian LPG carrier ships, Shivalik and Nanda Devi, have crossed the Strait of Hormuz carrying nearly 92,700 metric tonnes of LPG for India. According to Rajesh Kumar Sinha, Special Secretary in the Ministry of Ports, Shipping and Waterways, the vessels are expected to reach Mundra and Kandla ports on March 16 and 17 respectively. Authorities hope the incoming shipment will help stabilise supply and reduce the pressure currently being felt across multiple states.