LPG cylinder for Rs 1,500 as Iran war triggers panic buying. Is gas really scarce?

When demand spikes even briefly, and supply chains tighten, markets do react with visible stress. Right now, amid the war in Iran, that stress is showing up outside LPG agencies in several towns and cities, including in the National Capital Region (NCR). Long queues of consumers clutching empty LPG cylinders were on Monday seen outside a Bharat Gas agency in Noida's Sector 22. A viral video from Birdpur village in Uttar Pradesh's Sitapur district showed at least hundreds of people sitting on their empty LPG cylinders lined up outside a gas agency. The clip went viral on Saturday, March 7.

While queues were reported in some cities, towns and villages for LPG cylinders, several people that India Today Digital spoke to said there was no genuine shortage of LPG supplies on the ground. The central government has also denied claims of any LPG crisis.

The sense of crisis could be the doing of some suppliers to cash in on the panic related to reports of supply disruptions because of the Iran war. A person from a small town in Uttar Pradesh, claimed that she was forced to buy a domestic LPG cylinder on the black market for Rs 1,500.

"It's Ramzan, gas is essential," the homemaker, who didn't want her name to be shared, from UP's Pratapgarh district told India Today Digital.

A cylinder delivery partner of Indane Gas, who caters to consumers in South Delhi, told India Today Digital that he has noticed panic buying "over the past four to five days". He confirmed there were no LPG supply constraints.

LPG CYLINDER BOOKINGS RISE, LOCK-IN PERIOD FOR BOOKING RAISED TO 21 DAYS

The US and Israel's war on Iran, today in its 10th day, has triggered fears of a supply disruption. The government last week hiked LPG cylinder prices and tightened reordering norms. India meets nearly two-thirds of its LPG demand through imports, most of which come from Gulf countries such as the UAE, Qatar, Saudi Arabia and Kuwait. They are shipped through the strategic choke point, the Strait of Hormuz.

India is also the world's second-biggest importer of LPG, according to news agency Reuters. Around 80% of India's LPG imports pass through the strategic Strait of Hormuz in the Persian Gulf.

The Times of India on March 7, citing officials of oil marketing companies (OMCs), reported that LPG bookings rose by about 15%-20% in the past five to six days across parts of West Bengal, particularly in Kolkata and adjoining districts.

Reacting to the spike in bookings, OMCs on Friday increased the 15-day lock-in period between domestic LPG cylinder bookings to 21 days. For those with two cylinders, the lock-in period between two bookings has been raised to 30 days.

Amid this, officials insist there is no nationwide shortage.

Government and industry sources say India has sufficient LPG stocks and strategic reserves to manage the situation comfortably. An Inter-Ministerial Group is closely monitoring the situation and reviewing domestic supply priorities to ensure uninterrupted availability.

The panic among consumers appears to be less about actual scarcity and more about localised bottlenecks created by temporary booking restrictions, distributor-level supply controls and precautionary hoarding by consumers. These micro-level interventions, seen against the backdrop of the availability of LPG cylinders on the black market and what a gas delivery agent in South Delhi told India Today Digital, suggest that while an impression of shortage has been created, overall supplies remain stable.

GROUND REPORTS FROM CITIES, TOWNS SHOW SPIKE IN LPG BOOKING

Despite official reassurances, scenes of panic buying have emerged across several states. The spectacle of long queues that appeared a few days ago continued on Monday as well. Outside a Bharat Gas agency in Noida on Monday morning, a person standing among dozens told India Today Digital that "cylinder price had gone up by Rs 60... There is a war going on in Iran. I had booked my LPG refill five days ago, but it had still not been delivered at home".

"He added that he had come to the agency to find out what had happened to the booking. This is why I came to the agency myself... The rush may also be because the agency was closed on Sunday. Now we are all waiting for the agency to open to see what the matter is," Naresh Kumar, a resident of Noida Sector 22, said.

The Indane cylinder delivery partner from South Delhi said that due to the Iran war and after the government increased LPG prices on March 7, he saw "people trying to buy LPG cylinders on the black market".

However, he added that the situation was not what the queues might suggest, which is largely due to a surge in online and telephonic bookings. "Just today, a truck carrying 350 cylinders arrived at our agency," the LPG cylinder delivery partner told India Today Digital. This indicates that supplies are still coming in, and overall availability remains stable.

LONG QUEUES FOR PETROL, LPG IN UP AS PEOPLE STOCK UP

In Uttar Pradesh's Lakhimpur Kheri district, long lines formed at petrol pumps and LPG agencies in towns such as Nighasan, Pallia and Bhira after rumours spread about possible fuel rationing, news agency PTI reported on March 6.

Similar queues were reported in Hyderabad, Ranchi, Kolkata and parts of Goa, where LPG bookings surged before booking restrictions were introduced.

The ripple effects are being felt in the commercial and industrial sectors as well.

A Khurja-based ceramic factory owner told India Today Digital that industries in the hub in Uttar Pradesh rely on "HIPPO gas cylinders, which weigh approximately 422 kg each". The price surge has been significant since the war. "Before the war, the price of gas was around Rs 69 per kg, including GST. But on 7 March, the price increased by Rs 6, but industries are currently receiving gas at around Rs 94."

He said, adding that the earlier discounts have been discontinued, though it is unclear whether the company stopped them or agencies are retaining them. "The increase in price tag is forcing industries to place orders at least two days in advance," the person said.

Maharashtra's largest crematorium, Pune's Vaikunth Dham, temporarily halted all gas-based cremations due to an "acute shortage of LPG", officials said. This move, however, was also triggered by the government prioritising domestic LPG supply.

ARE DISTRIBUTOR-LEVEL BOTTLENECKS WORSENING LPG PANIC SITUATION?

While there is some reported mismatch in the overall supply and demand of LPG cylinders, disruptions at the local level, and governmental interventions, have amplified the frenzy and panic buying.

Restrictions were placed on LPG supplies for both domestic and commercial consumers on Thursday night (March 5), and people were advised to use the fuel judiciously. The Hindu Newspaper on March 7 reported that single-cylinder domestic consumers would now be allowed to make fresh bookings only after 21 days from the date of the last booking, while those with double cylinders can book only after 30 days.

Then on March 7, the price of non-subsidised domestic LPG cylinders was increased by Rs 60. This took the cost of a 14.2-kg cylinder to Rs 913 in Delhi, while commercial 19-kg cylinders saw a Rs 115 hike.

The move intended to prevent hoarding, however, inadvertently triggered further panic as consumers rushed to secure cylinders before potential limits tightened.

Kanav, a consumer on Reddit, said the sudden restrictions caught him off guard as he tried to book his regular refill. "We usually get a cylinder around every 15-20 days... I last got my cylinder on February 20 and before that on February 2... Never faced any issues earlier," he said. He added that when he tried to book a refill as his current cylinder was about to run out, he was met with a system message blocking the order. "Never before did I ever receive this message, so what are my options now?" he asked.

Some LPG distributors, as evident from the account of a South Delhi LPG delivery agent and the Pratapgarh homemaker who said she was forced to pay Rs 1,500 for a cylinder on the black market, suggest that temporary rationing of supplies to prevent bulk buying has also contributed to visible panic. The situation, they indicate, appears less like a real shortage and more like micro-level disruptions where some miscreants were trying to profiteer during a crisis.

The fact that some consumers have begun booking additional LPG cylinders in anticipation of shortages, has also aggravated the situation. But is that indicative of an LPG cylinder scarcity in India?

ARE LONG QUEUES FOR LPG CYLINDERS RESULT OF ACTUAL GAS SHORTAGE?

Despite the visuals of queues outside LPG agencies, government officials have maintained that there is no systemic shortage of LPG in India.

Government sources told The Hindu newspaper on March 3 that India had enough LPG stocks and strategic reserves to cover 25 to 30 days of demand, with refineries increasing production to offset any temporary import disruptions.

Energy analyst Chetan Bhutani told India Today TV that "strategic reserves can support LPG demand for about 15 to 20 hot days, if needed, while crude oil reserves are estimated to last about 40 to 45 days in the event of supply disturbances".

Days later, on March 6, Petroleum Minister Hardeep Puri said there was no shortage of energy in India and there was no cause for worry about its energy consumers. "Our priority is to ensure the availability of affordable and sustainable fuel for our citizens, and we are doing it comfortably. There is no shortage of energy in India and there is no cause for worry about our energy consumers," the Minister posted on X.

Moreover, the Centre directed all LPG refineries to increase production to ensure adequate availability across the country. Officials said India remained in a comfortable position regarding LPG stocks, news agency ANI reported on March 6.

A source told the news agency that LPG from the US started coming to India since January. Indian public sector oil companies in November 2025 had signed a one-year contract to import around 2.2 MTPA of LPG from the US Gulf Coast for the contract year 2026, reported ANI.

So, the queues are largely the result of panic bookings rather than a collapse in supply. Consumers rushing to refill cylinders simultaneously have made the distribution system appear overwhelmed. And the chokehold by LPG agencies, as reported in some pockets, has added to the panic buying of LPG cylinders and some of them going into black markets. The queues outside LPG agencies might signal anxiety in the market, but they do not yet reflect a nationwide shortage.

- Ends

(With inputs from Kubool Ahmad and Meenal Sharma)