Noida Businesses Grapple with Soaring LPG Black Market Prices Due to Supply Restrictions
In Noida, Greater Noida, and Ghaziabad, severe restrictions on commercial LPG supply have triggered a dramatic surge in black market prices, leaving small businesses and roadside vendors in a precarious position as they struggle to maintain operations. Factory owners and food vendors report being compelled to pay exorbitant amounts for cylinders amid widespread disruptions in official distribution channels.
Factory Operations Halted as Costs Skyrocket
Amit Upadhyay, president of the Industrial Business Association and owner of a packaging unit in Ecotech-3, Greater Noida, was forced to shut down his factory on Tuesday after commercial LPG cylinders became unavailable through legitimate sources. "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," he explained. Typically, unofficial market prices range between Rs 2,000 and Rs 2,200 on regular days, but the current shortage has pushed costs to unsustainable levels.
Vendors Face Profit Erosion and Uncertainty
Many street vendors, operating without formal commercial LPG connections, rely on informal supply networks that have become highly volatile. Suppliers are now demanding advance payments due to limited stock, exacerbating the crisis. A street food vendor near Raj Nagar District Centre in Ghaziabad noted, "They say the supply is short and we have to pay first to reserve a cylinder." For small food cart operators, the sudden spike in LPG costs is eroding already thin profit margins, with many unable to pass on the increased expenses to customers.
A paratha seller in Noida's Sector 16A highlighted the dire situation: "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." This sentiment is echoed across the twin cities, where a large number of roadside vendors depend on daily earnings and informal LPG sources.
Daily Refills Become Costly Burden
For vendors who rely on daily earnings, the crisis has intensified as they opt for small LPG refills from illegal bottling units to run their carts for single days. A tea stall operator in Indirapuram shared, "Earlier, we could refill just enough gas for a day at around Rs 85 per kg. 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, pushing many to the brink of closure.
Illegal Diversion of Domestic Cylinders Fuels Crisis
Much of the LPG sold in the black market originates from subsidised domestic cylinders intended for household use, according to an anonymous source involved in the illegal supply chain. 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. This price disparity incentivises diversion, exacerbating the shortage for commercial users and driving up black market rates.
In response to reports of black marketing, Noida District Magistrate Medha Roopam has launched inspections to curb illegal activities and address the supply disruptions. However, the immediate impact continues to weigh heavily on local businesses and vendors, threatening livelihoods and economic stability in the region.
