Centre asks states to crack down on hoarding, black marketing

New Delhi: The Centre has directed states and Union Territories to take strict action against hoarding and black marketing of petroleum products and LPG, amid supply concerns triggered by the closure of the Strait of Hormuz.

Invoking provisions under the Essential Commodities Act and the LPG Control Order, the Ministry of Petroleum and Natural Gas (MoPNG) asked states to intensify enforcement, conduct daily raids and inspections in coordination with oil marketing companies, and maintain strict vigilance against diversion and misinformation, according to an official statement.

States have also been instructed to institutionalise daily press briefings, set up control rooms and helplines, and actively counter fake news to reassure the public about fuel availability.

The move comes as the government steps up measures to ensure an uninterrupted supply of petrol, diesel and LPG across the country despite the ongoing geopolitical situation.

The government advised citizens “to avoid panic purchase of petrol and diesel as well as unnecessary booking of LPG,” and cautioned against rumours, urging reliance on official sources. Consumers have also been asked to use digital modes for LPG bookings and avoid visiting distributors unless necessary.

People were encouraged to adopt alternate fuels such as PNG, induction and electric cooktops where feasible, and to conserve energy in daily use.

Despite the “war situation,” the government said it has accorded the highest priority to domestic LPG and piped natural gas, along with essential services such as hospitals and educational institutions.

Measures taken include boosting refinery output, extending LPG booking intervals to 25 days in urban areas and up to 45 days in rural areas, and prioritising critical sectors. Alternate fuels like kerosene and coal are being deployed to ease LPG demand, with additional coal supplies directed to states.

States have been advised to expand PNG connections and ensure targeted LPG distribution. In a review meeting with state officials, the MoPNG reiterated that there is no disruption in LPG supply for migrant workers.

More than 4,000 raids have been conducted across states and UTs to check hoarding and black marketing, with over 1,300 LPG cylinders seized in the latest action. Public sector oil marketing companies have also issued over 670 show-cause notices to LPG distributors.

So far, 21 states and UTs are conducting regular press briefings to keep citizens informed, the statement said.