‘Smuggling’ lens on 5-fold spike in auto LPG demand in Kolkata over 10 days
Times of India | 20 March 2026
KOLKATA: An almost five-fold spike in auto LPG sale in the city over the past 10 days, coinciding with the curtailment of several autorickshaw routes, has raised red flags among oil marketing companies (OMCs), which suspect illegal diversion of fuel to commercial establishments reeling under a supply crunch.
Officials at oil companies said they are investigating the spurt in sales, which comes amid reports of fuel stations running dry and follows a govt order around two weeks ago suspending fresh LPG bookings for non-priority commercial sectors to cope with a crisis triggered by the war in West Asia.
According to figures shared by officials at Indian Oil Corporation and Hindustan Petroleum Corporation Limited, which together operate around 20 auto LPG stations in and around the city, sales peaked at 47.6 tonnes on March 16 and 47.5 tonnes the next day.
This marks a steep rise from the daily average of 10.4 tonnes in Jan and Feb.
The timing of the surge is difficult to ignore, an OMC official said. “Auto LPG sales have spiked since March 11. Interestingly, by that time fresh bookings for non-priority commercial sectors had been suspended. Given the timing, misuse cannot be ruled out. We are probing the spike,” the official said.
“Auto LPG typically accounted for 3.5% of commercial LPG consumption in Bengal before the war. That figure has jumped to nearly 15%, which is highly unusual,” another official said.
Sources in oil marketing companies said they may introduce stricter checks if illegal diversion is confirmed.
Auto LPG is subsidised and meant strictly for vehicles. However, industry insiders fear that some of it may be finding its way into restaurants, eateries and small commercial kitchens, which have been grappling with supply disruptions. The spurt in sales coinciding with the curtailment of routes by many auto operators, following a rise in the auto LPG price, has only fuelled the suspicions of diversion.
Auto driver Rajesh Kumar, who refuels daily, spoke of an unusual rush at dispensing stations. “Earlier, there was no waiting. Now, we need to queue for three-four hours. Even then there is no guarantee that we will get fuel,” he said.
Food business operators admit they are under pressure but deny any wrongdoing. “We’ve had no fresh supply of commercial cylinders for nearly two weeks. We are somehow managing with whatever stock we had,” said Sunita Sharma, who runs a small roadside eatery near Esplanade.
Restaurant associations echoed similar concerns. Hotel & Restaurant Association of Eastern India president Sudesh Poddar said, “We are get-ting much less than what we need.” National Restaurants Association of India’s national president Sagar Daryani said allocation of cylinders has resumed following their letter to the govt, but in limited numbers. The scarcity remains, he said.
With Bengal’s total commercial LPG consumption hovering around 320 tonnes per day, authorities are walking a tightrope — balancing enforcement to prevent misuse while ensuring transport operators and businesses are not left stranded. For now, the sudden surge has exposed deeper cracks in the supply chain, with both transporters and small businesses bearing the brunt of the uncertainty.