Cylinder prices increase to up to ₹4,000 in black market:Survey claims surge in delayed delivery cases

Due to the shortage of cooking gas cylinders, black marketing has increased in the country. Due to gas shortage and delivery delays, about 20% of families in the country are having to buy cylinders in black market. People are having to pay up to ₹4,000 for a domestic cylinder. According to a survey report released by research firm LocalCircles, the number of people buying cylinders in black has increased by 6% compared to last week. The survey revealed that 68% of Indian households faced gas delivery delays this week, compared to 57% last week. Gas imports to India have been affected due to Iran’s ongoing war with US and Israel and the closure of the Hormuz route. However, the Ministry of Petroleum and Natural Gas said in a press conference on Friday that panic booking has now decreased, but the situation remains concerning. Customers have to pay up to ₹4,000 more According to the survey, due to gas shortage, the number of people buying cylinders in black market has increased from 14% to 20% compared to last week. People are paying ₹300 to ₹4,000 more than the fixed rate. In one case, a retired officer’s housing society had to pay up to ₹5,000 for one cylinder for a community event. Phantom delivery The digital system that the government created to make gas supply transparent is now being misused. About 12% of consumers have complained about receiving fraudulent SMS messages.
These messages claim that their cylinder has been delivered, even though the gas has not reached their homes. This ‘phantom delivery’, meaning delivery only on paper, has reduced people’s trust in official booking platforms. Only 28% families get cylinders on time A survey of 57,000 people across 328 districts of the country revealed that only 28% of families are getting gas on time. The survey included 61% men and 39% women from cities and villages, most of whom reported problems with gas supply. People shift to PNG in cities and firewood in villages Given the shortage of gas supply, urban consumers are now shifting towards piped natural gas (PNG). Meanwhile, the situation in rural India is even worse. The survey indicates that due to lack of supply, more than 40% of the rural population still depends on traditional biomass (wood and dung cakes). Demanding Strict Action from Government LocalCircles is now preparing to submit this survey report to the central government and concerned ministries. The organization has demanded immediate strict action against dealers hoarding gas and agencies involved in fraud. Additionally, they have appealed to fix the flaws in the digital system so that common people don’t have to buy cylinders in black market. 4,500 Raids Conducted to Stop Black Marketing The Ministry of Petroleum informed that the government has set up control rooms and district level monitoring committees in 32 states and union territories to increase surveillance. 4500 raids were conducted across the country to prevent hoarding and black marketing. Of these, 1100 raids were conducted in Uttar Pradesh. Oil Marketing Companies (OMCs) also conducted 1800 surprise inspections. Sujata Sharma said that in the last week, about 11,300 tons of commercial LPG has been provided to consumers and it has been allocated in 18 states and union territories. 2 reasons for increase in crude and gas prices 1. Qatar’s Ras Laffan plant shutdown Iran’s drone attacks have caused significant damage to Qatar’s Ras Laffan. This is the world’s largest LNG hub and about one-fifth (20%) of global supply comes from here. The plant has been temporarily shut down after the attack. This has stopped the supply. 2. Near closure of ‘Strait of Hormuz’ The biggest challenge for India is the closure of the ‘Strait of Hormuz’. This approximately 167 km long waterway connects the Persian Gulf to the Arabian Sea. Due to the Iran war, this route is no longer safe. Given the risks, no oil tankers are passing through there. 20% of the world’s total petroleum passes through here. Countries like Saudi Arabia, Iraq and Kuwait also depend on this for their exports. India imports 50% of its crude oil needs and 54% of LNG through this route. Iran itself exports through this route.