57% Households Report LPG Delays, Black Marketing amid Supply Fears: LocalCircles Survey

Moneylife Digital Team 13 March 2026

Consumer Interest

More than half of Indian households surveyed in the past week reported difficulties in obtaining LPG cylinders, including delays in delivery and instances of black marketing, according to a nationwide study by LocalCircles.

"Despite government efforts to calm the consumers and ensure a smooth supply of cooking gas, profiteering by some has already distorted the market. As the survey results indicate, 53% of household consumers surveyed say LPG dealers have mentioned supply disruption/delay to them in the last week. In fact, 57% of household consumers surveyed report experiencing LPG cylinder delays and black marketing in the past week. The impact is that 36% household consumers surveyed who are experiencing LPG black marketing in their area say suppliers/middlemen are charging ₹100-₹500 extra per cylinder, but 9% of them are also paying over ₹500. Cases have emerged in Delhi-NCR where some gas agencies are charging as much as ₹1,500-₹2,800 per cylinder," LocalCircles says.

The survey, which gathered over 57,000 responses from consumers across 309 districts, found that 57% of household consumers experienced LPG cylinder delays or black marketing in the last seven days, reflecting growing concerns over cooking gas supply disruptions.

Fears of shortages have triggered panic booking and long queues at LPG distribution agencies across several cities, the report says. Many households have attempted to secure replacement or additional cylinders even as private distributors increased prices.

The government has directed oil marketing companies (OMCs) to prioritise LPG supply for domestic consumers and asked state authorities to closely monitor the situation to prevent hoarding and profiteering.

According to the survey, 53% of consumers say LPG dealers informed them of supply disruptions or delays in the past week. Among the respondents, 32% were told that supply might be delayed, while 21% were informed that a shortage currently existed.

Delivery timelines have also lengthened in many areas. Earlier, LPG cylinders were typically delivered within 48–72 hours, but some consumers are now waiting several days to receive refills.

To discourage panic buying, the government has extended the minimum gap between two LPG refill bookings from 21 days to 25 days. However, the move has created difficulties for households with higher consumption, particularly larger families or homes with only one cylinder.

The survey also highlighted widespread reports of LPG cylinders being sold outside the official distribution system at inflated prices.

Among respondents who reported black marketing in their areas, 36% said suppliers or middlemen charged an extra ₹100–₹500 per cylinder.

Some consumers say they had to pay even higher prices. In certain cases, buyers reported paying ₹1,500 to ₹2,800 per cylinder, particularly in parts of the Delhi-National Capital Region (NCR).

Overall, 14% of respondents say they had to purchase LPG cylinders from the black market due to supply constraints.

Concerns over LPG availability have intensified amid geopolitical tensions involving the US, Israel and Iran, which have disrupted global energy supply chains.

India relies heavily on imports to meet domestic LPG demand, with nearly 80%–85% of the country’s requirement sourced from Gulf nations including Saudi Arabia, the United Arab Emirates and Qatar.

Shipping through the Strait of Hormuz, one of the world’s busiest energy transit routes, plays a crucial role in transporting LPG and crude oil. Any disruption in tanker movement through the region can delay shipments and affect supplies to import-dependent countries like India.

The supply concerns have also affected the commercial sector. Restaurants, hotels and street food vendors, which rely heavily on LPG for cooking, have reported difficulties securing commercial cylinders.

Some businesses have reduced menu options, shifted to electric appliances or temporarily suspended operations due to limited availability of cooking gas.

India currently has over 31 crore LPG connections, with domestic households accounting for nearly 60% of the total consumption. Government schemes such as the Pradhan Mantri Ujjwala Yojana have significantly expanded access to LPG among rural and low-income households.

LocalCircles says it plans to share the findings with relevant government authorities to seek immediate intervention to curb profiteering and ensure smooth LPG supply.

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