LPG Cylinder Black Market Prices Spike in India Amid Middle East War Fears: Check City-Wise Rates

Cooking gas supply concerns are growing in India as reports emerge of LPG cylinders being sold at steep prices on the black market. The issue comes amid rising global tensions linked to the Iran-Israel conflict, which has disrupted energy markets and raised fears about possible supply interruptions from the Gulf region.

With uncertainty over global fuel shipments, panic buying has increased in several Indian cities. This surge in demand is putting pressure on LPG distribution networks and allowing illegal traders to sell cylinders at inflated prices.

LPG Shortages Push Black Market Prices Higher

Market reports from various parts of the country indicate that LPG shortages are driving black market rates sharply upward. In several areas of Delhi-NCR, street vendors and small food businesses say they are struggling to obtain cooking gas even after offering higher payments.

Restaurants, hotels and roadside eateries are particularly affected because their daily operations depend heavily on LPG. Some establishments have reportedly reduced operating hours or temporarily stopped cooking services due to lack of gas supply.

In many cases, commercial LPG cylinders are being sold unofficially for ₹3,200 to ₹5,000 per cylinder, far above the official price. Some businesses are even turning to domestic cylinders illegally in order to keep their kitchens running.

Panic Buying Increases Pressure on Supply

Fear of shortages has also triggered early refill bookings among households. Many families are ordering cylinders sooner than usual, worried that supply disruptions could worsen if the Middle East conflict escalates.

This sudden spike in demand has created long queues at LPG agencies in several cities. Reports of delays and shortages have surfaced in Mumbai, Bengaluru, Kolkata and Bhubaneswar.

Some restaurants in these cities have reportedly halted operations temporarily after failing to secure regular LPG supplies.

Government Steps to Control Black Marketing

To curb hoarding and illegal trading, authorities have invoked provisions of the Essential Commodities Act to closely monitor LPG distribution and prevent black market activity.

Officials have introduced several measures to stabilise supply, including:

Enforcing stricter monitoring of LPG distributors

Introducing a 25-day gap between domestic LPG bookings to prevent bulk purchases

Asking refineries to increase LPG production for domestic consumption

Strengthening surveillance to stop illegal resale of cylinders

Authorities have warned that strict action will be taken against individuals involved in hoarding or black marketing of cooking gas.

Officials Urge Public Not to Panic

Despite the shortages reported in some areas, government officials have urged people not to panic. According to authorities, India currently has sufficient LPG reserves to meet domestic demand.

The government is also exploring additional imports from countries such as Algeria, Australia, Canada and Norway to ensure uninterrupted supplies if disruptions from the Gulf region continue.

Latest LPG Prices in Major Indian Cities

Earlier this month, LPG prices were revised upward across India due to global fuel cost movements. The price of a 14.2-kg domestic cylinder increased by ₹60, while commercial 19-kg cylinders rose by around ₹114-₹115.

Current domestic LPG prices in major cities include:

New Delhi - ₹913.00

Mumbai - ₹912.50

Kolkata - ₹939.00

Chennai - ₹928.50

Bengaluru - ₹915.50

Hyderabad - ₹965.00

Chandigarh - ₹922.50

Gurugram - ₹921.50

Noida - ₹910.50

Bhubaneswar - ₹939.00

Jaipur - ₹916.50

Patna - ₹1,002.50

Oil marketing companies revise LPG prices regularly depending on global fuel trends and import costs.

Why the Middle East Crisis Matters for India

India depends heavily on imported LPG, with nearly two-thirds of its requirement coming from overseas suppliers. Much of this fuel is sourced from Gulf countries including United Arab Emirates, Qatar, Saudi Arabia and Kuwait.

Around 80 percent of these shipments pass through the strategic Strait of Hormuz, one of the world's most critical energy shipping routes.

With tensions in the region escalating, shipping risks and insurance costs for tankers have increased. Some cargoes are also being delayed or rerouted. Analysts warn that if the conflict continues for an extended period, LPG supplies could tighten further and cooking gas prices may rise in the coming weeks.

For now, authorities say the situation remains under control, but the government is closely monitoring supply levels and black market activity across the country.