Commercial cylinder crisis continues in Coimbatore, cylinder prices reach Rs 7,000 in black market

COIMBATORE: Traders and industrial stakeholders in Coimbatore district are facing difficulties as commercial LPG cylinders are being illegally sold at prices as high as Rs 7,000. Amid the supply crunch, the price of commercial LPG cylinders in the black market has surged sharply, reaching unprecedented levels. This has added to the operational burden on businesses, many of which are already grappling with rising input costs.

Small eatery owners say timely LPG refills are unavailable, forcing them to buy cylinders at high prices in the open market. In some areas, middlemen supply cylinders for a commission.

S Lingam, district secretary of the Tamil Nadu Vanigar Sangangalin Peravai, said more than 20,000 small grocery stores, restaurants and bakeries operated in the district.

Chandran of Avarampalayam, an eatery owner here, said he needed two commercial gas cylinders every two days and was forced to procure them from the outskirts at Rs 5,500–7,000 due to shortages, raising costs.

Migrant workers in Periyanaickenpalayam said they rely on 5 kg domestic cylinders costing Rs 638, with prices nearly doubled. Prices of food, including parotta, chapati and dosa, had also risen due to the gas shortage, he said.

N Mathivanan, president of the Coimbatore SIDCO Industrial Estate Manufacturers Welfare Association (COSIEMA), said that 19kg commercial gas cylinders, which had been earlier sold at around Rs 1,850 in the market, were being sold in the open market for Rs 3,500 to Rs 5,000, and currently as high as Rs 7,000. He pointed out that 33 kg and 47 kg cylinders had not been available for the past few days.

He said supplies to industries were inadequate, affecting sectors such as powder coating and fabrication. In the parallel market, cylinders were reportedly supplied only to regular buyers, while new customers were unable to get them easily, he said.

He noted that canteens in factories had not resumed full operations due to the shortage. With commercial gas cylinders in short supply, the sharp rise in prices had come as a shock to industrial units, he added.

Indian Oil Corporation officials said domestic cylinders were supplied regularly. They said they were taking steps to prevent illegal sale of gas cylinders at higher prices.

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