Hoarding of cooking liquefied petroleum gas (LPG) is spreading rapidly across India as energy instability originating from the Middle East intensifies.
About 400 LPG cylinders were discovered at a cemetery in Hyderabad, in the southern Indian state of Telangana, and multiple suspects were arrested in connection with the case, Reuters and other outlets reported on Saturday. The cylinders were reportedly traded through illegal distribution networks at prices up to three times the market rate.
Commercial LPG cylinders normally cost around 2,100 rupees (approximately 34,000 won), but on the black market they were sold for nearly 6,000 rupees (approximately 97,000 won), investigations found.
The Indian government has launched a nationwide crackdown, but the chaos on the ground shows little sign of subsiding. Authorities have recently uncovered thousands of hoarding cases and carried out large-scale seizures.
A growing number of restaurants have suspended operations due to difficulty securing LPG, while those still open have started reducing gas-intensive menu items. In some regions, more than 20 percent of restaurants and hotels have temporarily shut down.
India's heavy dependence on energy imports lies at the root of the turmoil. Analysts say disruptions in logistics through the Strait of Hormuz are dealing a direct blow, given that India relies on the Middle East for a significant share of its LPG supply. The strait serves as a critical corridor for global crude oil and gas shipments, and any blockade immediately triggers supply anxiety.
Demand for electric alternatives is also surging. Sales of electric induction cooktops and other substitute cooking appliances have soared by tens of times compared to normal levels, and major retailers are struggling to maintain inventory. Some households are preemptively switching to electric cooking devices in anticipation of prolonged supply instability.
Experts view the crisis as more than a temporary disruption, saying it has exposed structural vulnerabilities. If Middle East energy risks persist, a chain reaction of rising food prices and broader increases in dining-out costs will be unavoidable, observers say.
Given India's heavy reliance on LPG, gas supply disruptions could deliver a more direct economic shock than crude oil shortages, analysts say. Refiners are attempting to ramp up production, but output remains insufficient to meet overall demand.