LPG Shortage in India: Black Market Prices Soar Up to ₹3,000 in Major Cities - Check City-Wise Rates
Concerns over the supply of Liquefied Petroleum Gas (LPG) have started surfacing in several parts of India as disruptions linked to the escalating conflict in West Asia affect distribution channels. Reports from multiple cities indicate delays in cylinder deliveries, prompting restaurants, caterers, households and even temple kitchens to struggle with supply.
While the Central government has assured citizens that domestic LPG availability remains stable, local markets in several cities are witnessing a surge in black-market activity. In some areas, cylinders are reportedly being sold at prices far higher than their official rates.
Here is a city-wise overview of the prices being reported across India.
LPG Black Market Prices Reported Across Major Cities
As supply concerns rise, unauthorised sellers in many cities have reportedly started charging significantly higher rates for LPG cylinders.
Delhi-NCR
In parts of the National Capital Region, domestic LPG cylinders are reportedly being sold for ₹1,400 to ₹1,500 in the black market, well above the official price.
Uttar Pradesh Cities
Several cities in Uttar Pradesh have also seen unusual price hikes.
Mumbai
In the financial capital, commercial LPG cylinders are reportedly being sold for ₹2,800 to ₹3,000 in the black market.
Hyderabad
Commercial cylinders in some areas of the city are said to be priced at ₹3,000 or more.
Bengaluru
Reports suggest that LPG cylinders are being sold for up to 1.5 times their regular price in the black market.
Kolkata
Some parts of the city have reported commercial cylinders selling for as high as ₹3,000.
Bihar Cities
Multiple cities in Bihar are also witnessing inflated prices.
Jharkhand Cities
Andhra Pradesh Cities
Cities such as Vijayawada have reported commercial LPG cylinders being sold for up to ₹3,200 in the black market.
How Many LPG Cylinders Are Allowed at Home?
Amid rising concerns about hoarding, authorities have reminded consumers about the rules governing LPG storage at home.
As per current regulations:
Officials have urged people to avoid hoarding cylinders and to obtain refills only from authorised distributors.
Government Directs States to Monitor Supply and Stop Black Marketing
With reports of shortages emerging from several cities, the Centre has stepped in to closely monitor the situation.
Union Home Secretary Govind Mohan recently chaired a virtual meeting with chief secretaries of states and Union territories, officials from the consumer affairs ministry and senior police officers. During the meeting, states were instructed to keep a close watch on LPG distribution and take strict action against hoarding and black-market sales.
Authorities were also asked to maintain law and order around LPG distribution centres and prevent the spread of rumours regarding a nationwide shortage.
Why LPG Supply Is Under Pressure
India consumes roughly 31.3 million tonnes of LPG annually. Nearly 87% of this is used by households, while the remaining portion is consumed by commercial establishments such as hotels, restaurants and catering businesses.
However, India depends heavily on imports to meet its LPG demand, with around 62% of total consumption sourced from overseas.
The current pressure on supply chains is linked to developments in West Asia. Following the US-Israel attacks on Iran and Tehran’s retaliation, the Strait of Hormuz - a major shipping route - has been closed. This route handles 85–90% of India’s LPG imports from West Asia, including shipments from countries such as Saudi Arabia and Qatar.
Authorities Urge Public Not to Panic
Government officials and oil companies have reassured the public that domestic LPG supplies remain adequate for now. Authorities say the situation is being monitored closely and have urged consumers to avoid panic buying.
States have been advised to ensure smooth distribution so that households and businesses continue to receive LPG without disruption.
While the Central government has assured citizens that domestic LPG availability remains stable, local markets in several cities are witnessing a surge in black-market activity. In some areas, cylinders are reportedly being sold at prices far higher than their official rates.
Here is a city-wise overview of the prices being reported across India.
LPG Black Market Prices Reported Across Major Cities
As supply concerns rise, unauthorised sellers in many cities have reportedly started charging significantly higher rates for LPG cylinders.
Delhi-NCR
In parts of the National Capital Region, domestic LPG cylinders are reportedly being sold for ₹1,400 to ₹1,500 in the black market, well above the official price.
Uttar Pradesh Cities
Several cities in Uttar Pradesh have also seen unusual price hikes.
- Bareilly: Cylinders selling ₹200–₹500 above the official price.
- Pilibhit: Black-market rates are ₹100–₹200 higher than normal.
- Meerut: In some areas, domestic cylinders are available for ₹1,400 or more.
- Mirzapur: Cylinders reportedly being sold for around ₹1,300.
- Ghaziabad: Domestic cylinders ₹100 above official price, with extra charges for commercial cylinders.
- Gorakhpur: Domestic cylinders selling ₹250–₹300 higher, while commercial cylinders cost ₹500–₹700 extra.
- Ayodhya: Domestic cylinders priced ₹200 above the official rate, while commercial cylinders are largely unavailable.
- Kanpur: Domestic cylinders ₹200–₹250 costlier, commercial cylinders ₹400–₹500 higher.
Mumbai
In the financial capital, commercial LPG cylinders are reportedly being sold for ₹2,800 to ₹3,000 in the black market. Hyderabad
Commercial cylinders in some areas of the city are said to be priced at ₹3,000 or more. Bengaluru
Reports suggest that LPG cylinders are being sold for up to 1.5 times their regular price in the black market. Kolkata
Some parts of the city have reported commercial cylinders selling for as high as ₹3,000.Bihar Cities
Multiple cities in Bihar are also witnessing inflated prices.
- Patna: Domestic cylinders ₹1,500–₹1,800, commercial cylinders ₹3,000–₹3,200.
- Purnia: Domestic cylinders ₹1,500–₹2,100, commercial cylinders ₹3,000+.
- Gaya: Domestic cylinders ₹1,500–₹2,000 in the black market.
Jharkhand Cities
- Jamshedpur: Domestic cylinders selling for around ₹1,400.
- Hazaribagh: Prices reported between ₹1,500 and ₹1,700.
- Ranchi: Domestic cylinders reportedly priced ₹1,500–₹1,800.
Andhra Pradesh Cities
Cities such as Vijayawada have reported commercial LPG cylinders being sold for up to ₹3,200 in the black market.
How Many LPG Cylinders Are Allowed at Home?
Amid rising concerns about hoarding, authorities have reminded consumers about the rules governing LPG storage at home.
As per current regulations:
- A household can keep two domestic LPG cylinders connected simultaneously.
- One additional spare cylinder is permitted for backup.
- Keeping more cylinders than the permitted number without proper authorisation may lead to penalties under petroleum safety regulations.
Officials have urged people to avoid hoarding cylinders and to obtain refills only from authorised distributors.
Government Directs States to Monitor Supply and Stop Black Marketing
With reports of shortages emerging from several cities, the Centre has stepped in to closely monitor the situation.
Union Home Secretary Govind Mohan recently chaired a virtual meeting with chief secretaries of states and Union territories, officials from the consumer affairs ministry and senior police officers. During the meeting, states were instructed to keep a close watch on LPG distribution and take strict action against hoarding and black-market sales.
Authorities were also asked to maintain law and order around LPG distribution centres and prevent the spread of rumours regarding a nationwide shortage.
Why LPG Supply Is Under Pressure
India consumes roughly 31.3 million tonnes of LPG annually. Nearly 87% of this is used by households, while the remaining portion is consumed by commercial establishments such as hotels, restaurants and catering businesses.
However, India depends heavily on imports to meet its LPG demand, with around 62% of total consumption sourced from overseas.
The current pressure on supply chains is linked to developments in West Asia. Following the US-Israel attacks on Iran and Tehran’s retaliation, the Strait of Hormuz - a major shipping route - has been closed. This route handles 85–90% of India’s LPG imports from West Asia, including shipments from countries such as Saudi Arabia and Qatar.
Authorities Urge Public Not to Panic
Government officials and oil companies have reassured the public that domestic LPG supplies remain adequate for now. Authorities say the situation is being monitored closely and have urged consumers to avoid panic buying.
States have been advised to ensure smooth distribution so that households and businesses continue to receive LPG without disruption.
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