LPG Black Market Exposed In Bhopal As Iran War Triggers Supply Shortage

The Madhya Pradesh government has formed a cabinet-level committee to monitor the effect of the global conflict on fuel and LPG supply.

As thousands of residents in Bhopal stand in long queues for LPG cylinders under the scorching summer heat, NDTV’s on-ground investigation has uncovered a disturbing parallel market flourishing quietly inside residential neighborhoods.

A sting operation conducted by NDTV in the Ashoka Garden area has exposed how stove repair shops are reportedly running an illegal LPG refilling and black-marketing network selling cylinders hundreds of rupees above the official price while desperate families struggle to secure cooking gas.

The shortage of LPG in Madhya Pradesh has already triggered widespread concern.

The crisis comes amid disruptions tied to the escalating Iran-Israel conflict, which has begun affecting commercia l LPG supply chains across the country.

Hotels, restaurants and caterers have reported an acute scarcity of commercial cylinders over the past few days, forcing many businesses to suspend operations and even cancel wedding catering orders.

But NDTV’s investigation suggests that illegal operators are also exploiting the deficiency on the ground.

During the sting operation, NDTV’s team reached 80 Feet Road in Ashoka Garden, an area dotted with small furnace repair shops. Posing as customers desperate for cooking gas, reporters asked one shop owner if a cylinder could be arranged.

The shopkeeper quickly replied that the official supply had collapsed. “It’s not Indane… you can get Bharat Gas for Rs 1500,” he said casually. The situation is so bad that there are no bookings… the office is closed… there’s a war going on. This is black marketing, brother… go to the agency once… if you don’t get it, take my number.”

When the reporter continued the conversation, the shopkeeper became suspicious and started probing the identity of the customer. “Where do you live? I think I know you,” he said. “I can fill a small cylinder for Rs 120.”

The conversation indicated that illegal refilling of small domestic cylinders was being carried out inside residential areas, a practice that violates safety standards and carries serious explosion risks.

NDTV’s team then visited another shop nearby. The situation there appeared even more telling.

Phones at the shop kept ringing continuously, suggesting a steady stream of customers looking for gas. On one call, he was heard telling a customer, “It’s been three to four days since cylinders arrived… there’s no gas anywhere in the market right now.”

When NDTV’s team asked whether gas could be arranged, the shopkeeper quoted Rs 1300 for a cylinder, significantly higher than the official price.

When reporters tried to negotiate, asking if the price could be reduced, the shopkeeper said, “There’s no gas in the market. If you want it cheaper, look elsewhere.”

The sting operation suggests that the LPG shortage has created fertile ground for profiteering networks. Stove repair shops, which normally handle burner repairs and maintenance, appear to have become informal distribution points for illegally sourced LPG.

Residents in the area also admitted that many people are quietly turning to these shops to refill small domestic cylinders, despite knowing the risks. With agency supplies delayed and bookings uncertain, desperation is pushing households toward unsafe alternatives.

The larger backdrop of the crisis is equally worrying. BS Sharma, National President of the LPG Distribution Association of India, said that domestic LPG supply is continuing, though restrictions have been tightened. Bookings can now be made only through registered mobile numbers, and consumers must maintain a minimum gap of 25 days between bookings, with only one cylinder allowed per month.

Meanwhile, panic buying has begun in several parts of the state.

The Madhya Pradesh government has formed a cabinet-level committee to monitor the impact of the global conflict on fuel and LPG supply. The panel included Deputy Chief Minister Jagdish Devda, Food and Civil Supplies Minister Govind Singh Rajput, and MSME Minister Chaitanya Kumar Kashyap.

Chief Minister Dr Mohan Yadav has urged citizens not to panic, stating that the state has adequate reserves of essential fuels. “There are no difficulties in the supply system in Madhya Pradesh. The government has adequate supply resources available. No one needs to worry about food, gas or oil supplies,” the Chief Minister said.

But NDTV’s sting suggested that on the streets of Bhopal, the story looks very different. While the Government insists the system is functioning normally, a thriving underground LPG market appears to be filling the gap.

Bengaluru PG accommodations have begun restricting meal options and limiting gas-heavy dishes like dosa, poori and chapati due to a scarcity of commercial LPG cylinders. PG owners have advised switching to rice-based dishes, reducing weekday meals to two, and using electric cooking alternatives.

A scarcity of commercial LPG cylinders due to the Iran–Israel war has begun affecting paying guest (PG) accommodations across Bengaluru, prompting the PG Owners Welfare Association–Bangalore to issue temporary guidelines aimed at conserving gas and ensuring continued food supply for residents.

According to the association, PG kitchens that serve lakhs of residents in the city are already feeling the impact of the shortage. As a consequence, PG owners are being advised to limit high gas-consuming dishes, reduce meal frequency during weekdays, and explore alternative cooking methods.

Due to the shortage of commercial cylinders, PG accommodations are also feeling the impact. The situation is already deteriorating, as hotels are struggling to prepare food items without cylinders. “Many PG owners are also saying that commercial cylinders are not available in the current situation,” he said.

He added that representatives and leaders from various parts of Bengaluru have already convened core committee meetings to address the crisis. “Lakhs of people depend on PG accommodations to live in Bengaluru. At this time, we must ensure that there is no disruption in food arrangements for PG residents,” he said.

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