Panic Buying Hits LPG Supplies: Rs 1,500 Prices Reported Amid Iran Conflict Fears

NationalPanic Buying Hits LPG Supplies: Rs 1,500 Prices Reported Amid Iran Conflict...

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NEW DELHI – Rumors of a massive cooking gas shortage have sparked chaos across several states, with reports of LPG cylinders being sold for as much as Rs 1,500 in the market. The panic follows the recent escalation of the US-Israel-Iran war, which has disrupted global energy supply lines and forced the Indian government to take emergency measures.

From Uttar Pradesh to Telangana, long queues were seen at gas agencies over the weekend. In Sitapur, a viral video showed hundreds of people sitting on empty cylinders outside a distributor’s office. Fearing that supply might be cut off entirely due to the conflict in the Middle East, many families are attempting to “double book” or hoard extra refills.

What is the actual price?

While some opportunistic local sellers are reportedly demanding Rs 1,500, the official price is much lower. On March 7, 2026, oil marketing companies (OMCs) hiked the price of a 14.2-kg domestic LPG cylinder by Rs 60.

According to The Hindu, the new official rate for a non-subsidized cylinder in Delhi is Rs 913. In other cities like Mumbai and Kolkata, prices hover between Rs 912 and Rs 940. While this is the steepest hike in nearly a year, it is nowhere near the inflated prices being quoted by “panic-sellers” in rural areas.

Is there a real shortage?

The short answer is no but the supply chain is under pressure. The Strait of Hormuz, a critical sea route for 60% of India’s LPG imports, has become a war zone, making shipping difficult.

To prevent a real crisis, the Indian government has invoked emergency powers. According to Reuters, the Ministry of Petroleum has ordered all domestic refineries to stop making plastic-related chemicals and instead use all available raw materials (propane and butane) to maximize LPG production.

Union Minister Hardeep Singh Puri sought to calm the public, stating on Friday:

“There is no shortage of energy in India. Our priority is to ensure affordable and sustainable fuel for our citizens, and we are doing it comfortably.”

The background

India is the world’s second-largest LPG importer, and about 90% of those imports usually come from the Middle East. To reduce the risk, India has been diversifying its sources. PTI reported that India has already started receiving significant shipments from the United States to act as a “hedge” against the Middle East conflict.

Despite these assurances, the “fear factor” remains high. In some regions, dealers have unofficially started enforcing a 21-to-30-day gap between refills to stop hoarding and ensure every household gets at least one cylinder.

Officials are urging citizens to ignore social media rumors and only buy what they need. They warned that panic buying creates “artificial scarcity,” which allows black marketers to exploit the situation.

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