Cylinders available in black market, but at double the rate

Noida: Restrictions on commercial LPG supply have pushed prices up sharply in the black market, leaving small businesses and roadside vendors in Noida, Greater Noida and Ghaziabad struggling to keep operations running.

Factory owners and food vendors say they are being forced to pay significantly higher prices for cylinders amid the disruption.


Amit Upadhyay, who runs a packaging unit in Ecotech-3 in Greater Noida, said his factory had to wind up operations on Tuesday after commercial LPG cylinders became unavailable through official channels.

"When I checked the black market, a 19-kg cylinder that normally costs around Rs 1,900 is being sold for up to Rs 3,000. Even after paying that much, there is no guarantee it will be delivered the same day," said Upadhyay, president of the Industrial Business Association. On regular days, he added, the unofficial market price typically ranges between Rs 2,000 and Rs 2,200.

Several vendors said suppliers are now demanding advance payments because of limited stock.

"They say the supply is short and we have to pay first to reserve a cylinder," said a street food vendor operating near Raj Nagar District Centre in Ghaziabad.

For many small food cart operators, the sudden spike in LPG cylinder costs was eroding already thin profit margins. A paratha seller in Noida's Sector 16A said he could not pass on the rising cost to customers. "I sell two parathas for Rs 20. If LPG becomes this expensive, I cannot sell it for Rs 40. No one will buy. If this continues, I might shut the stall and return to my village in Banda," he said.

A large number of roadside vendors in the twin cities operate without formal commercial LPG connections. Many run small carts and depend on informal supply networks that become volatile whenever commercial distribution is disrupted.

For vendors who rely on daily earnings, the situation has become even more difficult. Instead of buying full cylinders, many get small quantities of LPG refilled from illegal bottling units to run their carts for a single day.

"Earlier, we could refill just enough gas for a day at around Rs 85 per kg," said a tea stall operator in Indirapuram. "Now they are asking nearly Rs 200 per kg. If we take five or six kg for the day, the cost becomes too high."

These daily refills are common among vendors selling tea, momos, chowmein and other snacks, where earnings barely cover day-to-day expenses.

Much of the LPG sold in the black market comes from subsidised domestic cylinders meant for household use. "Cylinders are diverted from domestic connections because they are cheaper," said a person involved in the illegal supply chain, requesting anonymity. Under the Pradhan Mantri Ujjwala Yojana, a 14.2-kg cylinder receives a subsidy of Rs 300 and currently costs around Rs 613, while a non-subsidised domestic cylinder is priced at about Rs 913.

Noida DM Medha Roopam said inspections have been launched after reports of black marketing.