LPG shortage spreads across India as panic booking rises, long queues form and black marketing surges

14 March, 2026
LPG shortage spreads across India as panic booking rises, long queues form and black marketing surges

Winning Bizness Desk

Mumbai.The LPG shortage that began amid the ongoing conflict involving the United States, Israel and Iran has triggered panic across India, with long queues outside gas agencies and reports of black marketing surfacing from several states. In many places, people were seen scrambling to secure cylinders, while commercial gas prices shot up sharply in the informal market. The disruption in supply has affected households, hotels, restaurants and small industries, forcing many establishments to shut operations temporarily or look for alternative cooking methods.

Panic booking triggers surge in daily LPG demand

The Union government said the shortage is largely driven by rumours and panic booking rather than an absolute supply collapse. Addressing a press conference in Delhi, Petroleum and Natural Gas Ministry Joint Secretary (Marketing and Oil Refinery) Sujata Sharma said the situation became worrying because most LPG imports reach India through the Strait of Hormuz, which currently remains disrupted due to geopolitical tensions. She said bookings have increased dramatically in recent days.

Key indicators of the current situation include:

  • Average daily LPG bookings rising from around 50–55 lakh to nearly 75–76 lakh cylinders
  • Heavy rush outside gas agencies in many cities
  • Sudden spike in commercial cylinder prices in the grey market
  • Hoarding and illegal stockpiling reported from multiple states

Authorities said the sharp jump in bookings has put enormous pressure on distribution systems across the country.

Industries and restaurants struggle as gas supply dries up

The LPG shortage has begun to hit small industries and food businesses severely. In Uttar Pradesh, factories that depend heavily on gas supply have either reduced operations or shut down completely. Asia’s largest pottery cluster in Bulandshahr has been among the worst affected.

Industrial disruptions reported include:

  • Around 95 percent of pottery units shut among 300–325 units in Bulandshahr
  • More than 30,000 workers losing employment temporarily
  • Glass bangle furnaces in Firozabad lying idle
  • 40 out of 55 major petha factories in Agra closed due to gas shortage

Industry groups have warned that if gas supply does not resume quickly, even silver anklet manufacturing in Agra could face disruption.

Queues, protests and chaos reported in several states

Scenes of panic buying have been reported from multiple states as people rush to secure LPG cylinders. In Rajasthan, Congress workers staged protests against the Centre over the supply crisis and even carried out a symbolic funeral procession of LPG cylinders in Jaipur.

Across several cities:

  • People begin lining up outside gas agencies as early as 5 am
  • Clashes reported between customers and police in some areas
  • Hostel mess kitchens and roadside eateries switching to wood, coal or electric stoves
  • Long waiting periods for cylinder delivery in many districts

The shortage has also hit Bihar, where commercial cylinder bookings have remained suspended for the last four days.

Booking systems fail as demand overwhelms supply

In Madhya Pradesh, LPG booking systems have nearly collapsed as online portals and servers struggled to handle the sudden spike in demand. Residents in Bhopal, Indore, Gwalior, Ujjain and Jabalpur reported difficulty in booking cylinders.

Additional impacts being reported include:

  • Cylinder delivery waiting time stretching to 7–8 days
  • Sharp rise in induction cooktop sales
  • Nearly 50,000 hotels and restaurants nearing gas exhaustion
  • Around 2,000 eateries in Bhopal alone not receiving commercial cylinders for four days

The shortage has also pushed consumers toward alternative appliances. Online retailers reported a massive surge in induction cooktop sales, with Amazon alone recording about 1.34 lakh units sold in a single day.

Black marketing, deaths and emergency measures emerge

In several states, the crisis has triggered black marketing and law enforcement action. In Gujarat, commercial LPG cylinders that normally cost around Rs 2,000 are reportedly being sold for Rs 3,000–4,000 in the black market. Authorities in Madhya Pradesh and Uttar Pradesh have seized 70 domestic cylinders during raids against illegal storage.

Other incidents highlight the seriousness of the situation:

  • A 66-year-old man in Punjab’s Barnala district died of a heart attack while waiting in line for two hours
  • Snatching incidents involving LPG cylinders reported in Ludhiana
  • People seen running away with cylinders in parts of Punjab
  • Wood and coal prices rising sharply in markets of Bihar

State governments have begun emergency measures. Maharashtra has ordered the formation of district-level control rooms and monitoring committees to ensure uninterrupted LPG distribution.

Meanwhile, the crisis has forced restaurants across Kerala to consider closure. The Kerala Hotel and Restaurant Association said nearly 40 percent of eateries could shut down if supply does not improve soon, warning that the impact will also extend to caterers, hostels, canteens and even cremation facilities that rely on LPG.