Illegal LPG transfers fuel serious blast risk in Pune’s industrial belt

Pune: The April 2 arrest of three individuals by the Chakan police for illegally refilling domestic LPG cylinders from a tanker in Bhose village has once again exposed a deep-rooted black market operating across Pune's industrial belt.

Investigators and industry experts say such a racket is neither new nor isolated, but part of a widespread, loosely organised network exploiting gaps in monitoring systems, weak enforcement, and high demand for cheaper cooking fuel, operating within a wide ambit.





This is amply demonstrated by back-to-back busts of similar LPG pilferage rackets in Chhatrapati Sambhajinagar, also on April 2, in which four were arrested, and across the Mumbai Metropolitan Region (MMR) on April 6, when 45 stolen gas cylinders were recovered.

Closer home, during the recent crackdown in Chakan, police officers caught the accused in the act of transferring liquefied petroleum gas (LPG) from a commercial tanker into smaller domestic cylinders using makeshift pipelines and valves.

The operation, carried out in a secluded area, reflects a modus operandi that has been replicated at multiple locations across Chakan, Talegaon, and other industrial clusters where tanker movement is high.

How does it happen?

According to the Pimpri Chinchwad police, the illegal transfer typically begins with the diversion of LPG tankers en route to authorised bottling plants or industrial clients.

"Drivers, often in collusion with middlemen, halt at pre-decided locations, usually isolated warehouses, farm plots, or roadside sheds. Here, the gas is siphoned off using rubber hoses, pressure regulators, and improvised connectors. This is a risky exercise as it is done in an unprofessional and hurried manner. Therefore, there is a high chance of a blast," deputy commissioner of police (DCP-crime) Shivaji Pawar told TOI.

Domestic cylinders, many of them either stolen or unregistered, are then filled and sold in the black market.

Petrochemical experts warned that the process of transferring LPG outside controlled environments is inherently dangerous. LPG is a highly flammable hydrocarbon stored under pressure, and even minor leaks can lead to catastrophic explosions if exposed to a spark or heat source, they said.

"Using rubber hoses, pressure regulators, and improvised connectors, LPG is transferred from high-capacity tankers into smaller domestic cylinders for these rackets. The refilling process, carried out without adherence to safety norms, takes anywhere between 15 minutes to an hour, depending on the scale of the operation," said a senior official from Bharat Petroleum Corporation Ltd (BPCL), on the condition of anonymity.

"The entire system is makeshift and extremely hazardous. There is no grounding, no pressure monitoring, and no emergency protocol. One spark is enough," said petrochemical safety expert Madhav Divekar, who is familiar with such operations.

After refilling, the cylinders are distributed through a parallel black-market supply chain, reaching roadside eateries, small factories, construction sites, and even households seeking cheaper alternatives to authorised LPG.

"In this entire chain, we have established the role of local residents in the previous case as well as this case too. Without local support, it cannot be done," said DCP Pawar, who had investigated the May 2024 incident in which a tanker burst into flames in Shelpimpalgaon village on the Chakan-Shikrapur highway.

The role of insiders

While drivers and local operatives form the visible layer of the racket, investigators said the operation is unlikely to function without insider involvement.

Police suspect that certain employees within LPG distribution networks — ranging from tanker contractors to logistics handlers and, in some cases, personnel linked to gas agencies — may be involved in this racket. Their role often includes providing information on tanker routes, delivery schedules, and surveillance gaps.

"There are instances where tanker seals are tampered with and then replaced, or delivery records are manipulated to mask discrepancies in volume," said a senior officer of the Chakan police, adding, "Without some level of internal knowledge, sustaining such operations over time would be difficult."

Industry insiders also pointed to the possibility of collusion at multiple levels, including weighbridge operators and maintenance staff, who may overlook irregularities in tanker loads.

Another senior BPCL official told TOI, "Each vehicle is fitted with a GPS system and monitored by a particular team at our stations. If a particular vehicle changes route, the driver has to give a written explanation. Also, we have designated roadside stops for the tankers. So, they cannot halt as per their choice. Transportation is also done in a time-bound manner."

"Despite having these measures in place, drivers and insiders find ways to steal gas. Our vigilance teams have taken action time and again. We have dedicated patrolling teams for fuel transportation, but it is not possible for gas due to the high volume of vehicles. That is where advantage is taken," added the official.

Prakash Meena, the territory manager of BPCL (LPG) for Pune, did not respond to phone calls and text messages by TOI.

A ticking time bomb

The risks associated with illegal LPG transfer are severe and immediate, said police and experts alike.

Officials in the petroleum industry said LPG is a highly flammable mixture of propane and butane, stored under high pressure in specialised containers. Any unauthorised handling, especially in uncontrolled environments, can lead to leaks. When mixed with air, LPG forms an explosive vapour cloud that can ignite with minimal ignition sources — such as a spark, static electricity, or even a lit cigarette.

"In authorised bottling plants, strict protocols are followed. Earthing systems, gas detection alarms, fire suppression units, and trained personnel. None of these safeguards exist in illegal setups," said a chemical engineer working in the oil and gas sector.

Past incidents across India have demonstrated the devastating consequences of such negligence. Explosions linked to LPG leaks have resulted in fatalities, injuries, and extensive property damage, particularly in densely populated or industrial areas.

"In clusters like Chakan and Talegaon, home to automobile, engineering, and warehousing units, the presence of flammable materials and heavy machinery further amplifies the risk. The 2024 Shelpimpalgaon incident showed us the magnitude of the damage. Fortunately, there were no casualties," said the senior Chakan police officer.

Black market thrives

At the heart of the racket lies a simple economic incentive: price disparity.

According to the police, domestic LPG cylinders, subsidised for household use, are significantly cheaper than commercial cylinders used by businesses. This price gap creates a strong demand for illegally refilled domestic cylinders among small eateries, roadside vendors, and micro-industries looking to cut costs.

At present, a commercial 19kg cylinder costs around Rs1,900 in Maharashtra, while a domestic 14.2kg cylinder is around Rs915.50, and a domestic 5kg cylinder around Rs565. When LPG is illegally pilfered into cylinders, these are sold for less than market rates round the year. However, during the current LPG shortage crisis against the backdrop of conflict in West Asia, many hospitality players have told TOI that commercial cylinders in the black market are retailing for as high as Rs6,000-7,000.

"Rapid industrialisation and urban expansion have also increased LPG consumption in general, placing pressure on supply chains and creating opportunities for diversion. Weak monitoring systems and limited real-time tracking of tanker movement further intensify such activities. While oil marketing companies have introduced GPS tracking and digital sealing mechanisms, enforcement remains inconsistent," added an official from a petroleum company.
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