Goa battles gas crisis, but black market booms along the coast

SHWETA KAMAT MAHATME | 2 hours ago

PANAJI

Even as the State government maintains that there is no shortage of LPG cylinders in Goa, an underground network of illegal sales appears to be quietly thriving in parts of the State, particularly along the coastal belt, where cylinders are reportedly being sold at Rs 500 to Rs 800 above the official price.

Across several towns and villages in Goa, citizens have been seen queuing outside gas agencies, hoping to secure refills through official channels. However, many consumers claim that booking delays and uncertain delivery schedules have made it increasingly difficult to obtain cylinders through the authorised system.

Taking advantage of the situation, illegal sellers have begun operating discreetly, supplying domestic LPG cylinders at inflated rates. Sources said the cylinders are being sold directly to small as well as some large commercial establishments, bypassing authorised distributors.

Sources said another trend fuelling the illegal trade is that some households with multiple LPG connections or spare refilled cylinders are renting them out to commercial establishments at steep prices.

According to data from oil marketing companies (OMCs), a domestic LPG cylinder currently costs between Rs 900 and Rs 1,000, while commercial cylinders range from Rs 1,800 to Rs 2,200. The price difference has made domestic cylinders particularly attractive for businesses seeking to cut operational costs.

Commercial establishments, especially tourism-linked businesses along the coastal belt, are increasingly turning to this parallel market. Many operators claim that irregular supply of commercial cylinders and higher costs have pushed them towards purchasing domestic cylinders illegally at inflated rates.

A shack operator from Agonda, requesting anonymity said, “This is a peak business time before the monsoon season sets in. We cannot let the opportunity go. When we are running out during peak business days, there is no option to go for domestic cylinders from market by paying additional Rs 800 more”. Similar views were expressed by hotel operators in coastal areas of Cavelossim in South and Morjim in North Goa.

“Some residents are renting out their filled LPG cylinders at a cost as high as Rs 1500 to hotels nearby,” a hotel operator from Cavelossim said adding ‘that is fine as far as we are able to operate our unit and make business”.  

Similarly, residents from Porvorim said the situation has become frustrating for ordinary consumers. “We book the cylinder but have to wait several days. Meanwhile, people are openly selling cylinders at higher rates. The authorities need to control this before it becomes a bigger problem,” the resident said adding that he has already raised the concern with the authorities.

The growing black market has now prompted enforcement action across the State. The Directorate of Civil Supplies has warned of strict action against illegal sale, overpricing and diversion of domestic cylinders.

“We have received some complaints pertaining to overpricing by traders and agents. We are in the process of taking action,” a senior official from the department said.

Authorities have issued contact details of enforcement officers and urged citizens to report cases of hoarding, illegal sale or diversion of LPG cylinders.

As part of a statewide crackdown, the department, in coordination with the police, has decided to step up monitoring, inspections and enforcement drives. Surprise checks will be conducted at agencies, commercial establishments and suspected illegal distribution points to prevent irregularities in the LPG supply chain.

Officials said the intensified inspections aim to curb the emerging black market, ensure fair distribution and prevent misuse of subsidised domestic LPG cylinders.

 


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