LPG Crisis in India: Gas Cylinders Sold at Rs. 4,000 in Black Market Amid Wedding Season Demand

India's LPG Cylinder Shortage is once again creating major issues for common people as the summer wedding season in India has begun.

Gas cylinder supply shortage, & high prices due to black marketing have put a lot of pressure on caterers and families who are currently helpless.

According to a report by India Today, in Delhi, gas cylinder black marketing is cashing on people's helplessness. LPG is being sold at Rs. 4000 per cylinder, which is more than 4 times the current LPG price in Delhi today, which is around Rs 913.

LPG Crisis In India Timeline

The world's fastest-growing major economy imports about 85% of its liquefied petroleum gas (LPG) from the Middle East, much of it used in cooking food for its 1.4 billion people. With supplies impacted by the US-Israel war with Iran, the government has begun diverting the precious fuel away from industrial users, like canteens, hotels and restaurants, to keep flames alight on household stoves.

As per govt data, India's LPG imports account for around 60% of domestic consumption, and about 90% of those imports normally move through Hormuz. Thus, roughly 54% of normal LPG availability is under direct exposure if the corridor remains shut.

For most Indian families, the crisis arrived as two simultaneous shocks: rising prices and vanishing supply. On 7 March 2026, the three OMCs raised the price of a 14.2-kg domestic cylinder by Rs. 60, bringing it to RSs913 in Delhi for non-subsidised consumers. PMUY beneficiaries pay approximately Rs. 613 after the Rs. 300 government subsidy.

Consumers report delays beyond the 25-day cycle as cylinder deliveries slow despite official claims. Long waits push households towards costly private options, raising concerns over supply gaps and rising expenses.

Government Response on LPG Shortage In India

However, The Ministry of Petroleum and Natural Gas categorically stated that India's petroleum and LPG supply situation is fully secure and under control. Cylinder demand had gone up to 89 lakh cylinders due to panic ordering by consumers and has now come down to 50 lakh cylinders again. The Ministry called upon citizens not to be misled by a deliberately mischievous, coordinated campaign of misinformation to spread unjustified panic.

After the LPG Control Order issued by the Ministry, domestic refinery production has been ramped up by 40%, bringing daily LPG output to 50 TMT (more than 60% of India's requirement) against a total daily requirement of around 80 TMT. Oil companies are successfully delivering over 50 lakh cylinders every day.

Additionally, Between 14 and 24 March, 5 Indian-flagged LPG carriers were evacuated from the Strait of Hormuz on three different occasions, escorted by Indian Navy warships through the Gulf of Oman under Operation Sankalp. On 26 March, Iran's Foreign Minister announced that ships owned by five nations including India would be allowed to transit the Strait of Hormuz.