Gas Shortage: LPG Black Market Is Booming As Digital Systems Fail India’s Households
India’s push for a digital-first cooking gas system has found severe lapses at the last mile as a nationwide supply crisis has driven nearly a fifth of households to the black market, according to a new survey conducted by LocalCircles.
The survey reveals that about 68% of Indian households experienced delivery delays this week, a sharp climb from 57% just a week ago. The crisis, emanating from the ongoing Iran-US conflict and the subsequent blockade of the Strait of Hormuz, has left an energy import-dependent India with an acute gas shortage.
The scarcity of cooking gas has led to a predatory shadow economy. The survey reports that 20% of respondents admitted to purchasing cylinders from illegal sellers, up from 14% a week ago. These consumers are paying a high premium, ranging anywhere from Rs 300 to Rs 4,000 above the official rate. In an extreme instance, a housing society of retired bureaucrats paid as much as Rs 5,000 per cylinder for a community event.
India’s digital infrastructure, intended to streamline this distribution, is instead being weaponised. 12% of consumers reported receiving fraudulent SMS notifications, claiming their cylinders were delivered when they had never arrived. While 84% of respondents have not reported such scams, the rise of ‘phantom deliveries’ is eroding trust in official booking platforms, the report adds.
The survey, which collected 57,000 responses across 328 districts, found that only 28% of households had a normal experience. Demographically, 61% of respondents were men and 39% were women, representing a broad cross-section of India’s urban and rural districts.
As reliability falters, urban consumers are pivoting toward piped natural gas, while over 40% of rural India remains tethered to traditional biomass.
LocalCircles plans to escalate these findings to federal authorities, calling for an immediate crackdown on hoarding and fraudulent dealerships.
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