India's LPG Crisis: How the Black Market is Flourishing

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India's LPG Crisis: Black Market Thrives as Cylinders Hit Rs 6,000 Amid Supply Crunch

People stand in a queue with their empty LPG cylinders outside a gas agency amid supply disruptions following the US-Israeli conflict with Iran, in Ahmedabad, March 12, 2026. Reuters

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Firstpost•13-03-2026, 16:47

India's LPG Crisis: Black Market Thrives as Cylinders Hit Rs 6,000 Amid Supply Crunch

•LPG black market surges across India, with commercial cylinders selling for up to Rs 6,000 due to supply shortages.
•Supply crunch linked to the shutdown of the Strait of Hormuz, a vital waterway for India's oil and gas imports.
•Government increased official LPG prices and restricted commercial supply, impacting restaurants and businesses.
•Eateries like Tadka Rani and Khadak Singh Da Dhabha face closures or reduced operations due to exorbitant black market rates.
•Authorities are monitoring the situation, with Delhi Police preparing to prevent black marketing and ensure smooth distribution.

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A griddle is switched off to conserve LPG gas inside Vidyarthi Bhavan restaurant, as restaurants and hotels in southern India, including the IT hub of Bengaluru, have warned of shutdowns amid disruptions in commercial LPG supply, following the US-Israeli conflict with Iran, in Bengaluru, March 10, 2026. Reuters

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