Hyderabad Police Crack Down on Illegal LPG Cylinder Racket Fueled by Fabricated Shortage

Hyderabad police and the Commissioner’s Task Force have dismantled an illegal LPG distribution network in which delivery personnel and intermediaries diverted cylinders from authorized supply chains and sold them on the black market under a fabricated scarcity narrative. In a major operation in Secunderabad, 129 commercial cylinders worth ₹7.5 lakh were seized and four individuals, including two delivery boys, were arrested.
Deputy Commissioner of Police (Task Force) Vaibhav Gaikwad confirmed on May 6, 2026, that there is no actual shortage of LPG in the city and that commercial cylinder sales remain unrestricted. He stated that delivery personnel are primarily responsible for creating artificial scarcity, diverting stock, and selling cylinders to roadside vendors and small businesses for ₹5,000–₹6,000—nearly double the official rate of ₹3,315.
Investigators also found domestic subsidised cylinders being siphoned and refilled into smaller commercial containers. A case in Goshamahal led to the exposure of an illegal refilling unit in Jumerat Bazaar after a resident reported a two-kilogram shortfall in a delivered cylinder. Police arrested suspects involved in transferring gas and resealing cylinders for resale.
Gas agencies and police have initiated an awareness campaign urging consumers to weigh cylinders before acceptance. Agencies are now required to display warnings and ensure delivery staff demonstrate weighing in front of customers. Task force teams continue inspections across delivery chains to prevent further diversion.
The police task force will resume coordinated inspections with gas agencies on Tuesday, while monitoring complaint patterns to target high-risk zones. Authorities have warned of strict action against delivery personnel and agencies found involved in unauthorised diversion.