LPG delays push households to black market: Prices soar up to ₹4000 per cylinder
43% of household consumers reported experiencing LPG delays in the last one week, while 8% said they had to turn to the black market to secure a cylinder on time
- Mar 30, 2026,
- Updated Mar 30, 2026 1:53 PM IST
Delays in domestic LPG deliveries across Indian cities are pushing households into the black market, where consumers are paying steep premiums of up to ₹4,000 per cylinder amid supply disruptions.
A nationwide survey by LocalCircles shows that 43% of household consumers reported experiencing LPG delays in the last one week, while 8% said they had to turn to the black market to secure a cylinder on time.
The findings point to a widening gap between official supply systems and on-ground availability, with delays, failed bookings, and delivery mismatches emerging as key triggers.
Black market fills supply gaps
As delays stretch into days and even weeks, the informal market is stepping in. The survey found that 72% of respondents who were aware of black marketing in their area said suppliers and middlemen were charging an extra amount of ₹300-₹ 4,000 per cylinder.
The price variation reflects both urgency and scarcity. While some consumers paid ₹300–500 extra, others reported paying ₹2000–4000 or more, indicating sharp distortions in last-mile pricing.
The black market activity has been reported across multiple regions, including Pune and parts of Tamil Nadu, where cylinders were allegedly sold at several times the official rate.
Delays, failed bookings and “ghost deliveries.”
The disruption begins within the formal system. According to the survey, 13% of respondents said they were unable to even place bookings when needed, while 22% reported waiting longer than usual for deliveries.
In cities such as Lucknow and Prayagraj, consumers reported waiting up to a week despite receiving booking confirmations and Delivery Authentication Codes. In Bhubaneswar, complaints of “ghost deliveries,” where cylinders were marked as delivered without actual supply, added to consumer frustration.
In some cases, households said they simply could not get a cylinder at all, forcing them to seek alternatives outside the official network.
Diversion and leakage in the supply chain
Authorities have flagged diversion of subsidised cylinders and irregularities at the distributor level as key drivers of the black market.
In Sitapur, nearly 800 cylinders were found missing from a gas agency, leading to its sealing. In Delhi, enforcement agencies seized over 1,700 cylinders and registered multiple cases linked to hoarding and illegal distribution networks.
Reports also indicate that delivery personnel divert cylinders intended for households into illegal resale channels, exposing gaps in monitoring and authentication systems.
Delays in domestic LPG deliveries across Indian cities are pushing households into the black market, where consumers are paying steep premiums of up to ₹4,000 per cylinder amid supply disruptions.
A nationwide survey by LocalCircles shows that 43% of household consumers reported experiencing LPG delays in the last one week, while 8% said they had to turn to the black market to secure a cylinder on time.
The findings point to a widening gap between official supply systems and on-ground availability, with delays, failed bookings, and delivery mismatches emerging as key triggers.
Black market fills supply gaps
As delays stretch into days and even weeks, the informal market is stepping in. The survey found that 72% of respondents who were aware of black marketing in their area said suppliers and middlemen were charging an extra amount of ₹300-₹ 4,000 per cylinder.
The price variation reflects both urgency and scarcity. While some consumers paid ₹300–500 extra, others reported paying ₹2000–4000 or more, indicating sharp distortions in last-mile pricing.
The black market activity has been reported across multiple regions, including Pune and parts of Tamil Nadu, where cylinders were allegedly sold at several times the official rate.
Delays, failed bookings and “ghost deliveries.”
The disruption begins within the formal system. According to the survey, 13% of respondents said they were unable to even place bookings when needed, while 22% reported waiting longer than usual for deliveries.
In cities such as Lucknow and Prayagraj, consumers reported waiting up to a week despite receiving booking confirmations and Delivery Authentication Codes. In Bhubaneswar, complaints of “ghost deliveries,” where cylinders were marked as delivered without actual supply, added to consumer frustration.
In some cases, households said they simply could not get a cylinder at all, forcing them to seek alternatives outside the official network.
Diversion and leakage in the supply chain
Authorities have flagged diversion of subsidised cylinders and irregularities at the distributor level as key drivers of the black market.
In Sitapur, nearly 800 cylinders were found missing from a gas agency, leading to its sealing. In Delhi, enforcement agencies seized over 1,700 cylinders and registered multiple cases linked to hoarding and illegal distribution networks.
Reports also indicate that delivery personnel divert cylinders intended for households into illegal resale channels, exposing gaps in monitoring and authentication systems.