Cooking gas cylinders have become a hot commodity on the back of an unusual surge in demand amid a widening Middle East conflict triggered by US-Israel strike on Iran last month.
Reports of these cylinders being stolen, hoarded, sold on the black market are on the rise.
NDTV sting operations have exposed black marketeers selling cylinders at steep prices - with rates going up to Rs 6,500 for a gas cylinder and Rs 3,500-Rs 4,000 to refill a 14-kg cylinder, which earlier cost Rs 900-Rs 1,000.
The diversion of sale of LPG outside authorised channels is illegal under the Liquefied Petroleum Gas Regulation Order and the Essential Commodities Act.
Despite increased police vigil forcing many black marketeers to shut shop publicly, several continue to operate secretly.
An NDTV investigation shows most operators now deal only through references while others run the racket from stove repair or kirana stores with hidden refilling areas, thriving on the fear and desperation of common people.
How are you able to evade cops? NDTV asked a black marketeer in Delhi?
"We are doing it in the shadows," came the reply.
Does anybody alert you that there's going to be a raid? Is there any local help that you get? NDTV asked.
"Help? This is illegal," the black marketer said, adding, "Since no one recognises you, no one will give you cylinders."
Where do you get the gas from? NDTV asked again.
"We get it from the agencies in black in a hushed manner," the man said.
In Rajasthan's coaching hub Kota, people associated with hostels and mess facilities claimed they are facing severe difficulties in meeting the demand of around 600-700 LPG cylinders per day for cooking food for students.
The district administration had earlier assured them of a special quota following the onset of the LPG shortage. However, they have not yet received any cylinders or the required format for allocation and are being forced to purchase cylinders in the black market for Rs 3,000-3,500 to meet daily food requirements, Naveen Mittal, president of the Kota Hostel Association, told PTI.
India imports 88 per cent of its crude oil needs, 50 per cent of its natural gas requirement and 60 per cent of its LPG demand.
What The Government Says
Commercial LPG cylinder distribution has begun in 29 states and Union Territories, while authorities have stepped up raids and surprise inspections across the country to curb hoarding and black-marketing amid heightened pressure on cooking gas supplies, a senior oil ministry official said on Saturday.
Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, said panic booking continues to rise despite the fact that there are enough stocks available to meet domestic household requirements of cooking gas LPG.
India, she said, has adequate crude oil inventories, and domestic refineries are operating at full capacity, ensuring sufficient availability of petrol and diesel across the country.
"There are no dry-out reports from any retail outlets. Our refineries are operating at full capacity, and sufficient petrol and diesel are available. Based on our requirements, we produce adequate petrol and diesel domestically and do not need to import," she said.
Sharma said domestic LPG supply is being prioritised even as the government continues to closely monitor the situation amid the prevailing geopolitical developments that hampered energy supplies from the Gulf countries.
Before the US and Israel attacked Iran on February 28, and Tehran retaliated by hitting US bases in neighbouring countries as well as Israel, more than half of the crude oil requirement came from the Middle East countries, 30 per cent of gas from the region and 85-90 per cent of LPG.
The war has led to an effective blockage of the Strait of Hormuz, which is the usual sea transit for energy from the Gulf countries. While India has managed to source crude oil from other countries, including Russia, the hit on gas supply has led to cuts for industrial users and to commercial establishments such as hotels and restaurants.
"The situation is a matter of concern for all of us, but we are ensuring that household consumers do not face inconvenience. Domestic consumers have been prioritised, and LPG cylinder supply is being ensured for them," she said.
However, LPG refill bookings have surged sharply due to panic buying by consumers.
"Yesterday, the number of bookings was about 75 lakh, and it has now increased to around 88 lakh. This is nothing but panic booking," the official said Saturday, urging consumers to book cylinders only when required.
Pre-war, daily bookings totalled around 55 lakh and oil marketing companies delivered 50 lakh cylinders per day. While the cylinder deliveries remain the same, bookings have surged.
Booking restrictions, the official clarified, are linked to the time gap between two deliveries.
"In urban areas, there is a minimum gap of 25 days between the last delivery and the next booking, while in rural areas the gap is 45 days. If consumers try to book before this window, the booking will not take place," she said.
Sharma also said commercial LPG cylinders have been placed at the disposal of state governments to prioritise distribution among consumers.
Commercial cylinder distribution has already started in about 29 states and Union Territories, she added.
State governments and district administrations have been asked to closely monitor the LPG supply situation and ensure smooth distribution, she said, adding that several chief ministers and senior officials have already held review meetings in states such as Haryana, Goa, Telangana and Andhra Pradesh.
Authorities have also intensified enforcement to curb hoarding and black-marketing, with states conducting raids and surprise inspections in coordination with oil marketing companies (OMCs).
The government has also asked OMCs to launch a campaign promoting digital booking of LPG refills and spreading awareness to prevent panic buying.
While the situation remains serious, LPG cylinders are available, and supplies are continuing, she added. "There is no cause of panic. We urge consumers to rely only on information provided through official channels and resort to unnecessary panic."
