2 arrested in Madurai for hoarding 398 LPG cylinders; officials say no need for panic buying

MADURAI: Two persons in Madurai were arrested and detained under the Goondas Act for allegedly hoarding 398 LPG cylinders for black-market sale. Police said this is the first time in Tamil Nadu that such strict action has been taken in a cylinder-hoarding case.

Meanwhile, the Tamil Nadu Petroleum Dealers’ Association urged the public not to panic-buy petrol or diesel, assuring that 14 fuel terminals across the state have sufficient stock to supply more than 7,000 retail outlets based on demand.




The arrests were made after the Civil Supplies Criminal Investigation Department (CS-CID) received a tip-off about the illegal diversion of subsidised domestic LPG cylinders for commercial purposes.

Acting on the tip-off, a special team carried out a raid at an open plot near Palani’s residence in the Kovilpappakudi area, where they seized 100 subsidised domestic LPG cylinders and 109 commercial cylinders.

In a follow-up raid at the house of Madan Kumar, 27, in Anandam Nagar, officials recovered another 189 cylinders, including 126 commercial ones.

A senior official said both accused were booked under the Essential Commodities Act and later detained under the Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act—commonly referred to as the Goondas Act—by Madurai district collector Praveen Kumar.

The CS-CID Madurai zone has issued a stern warning that illegal hoarding of essential commodities will be met with severe legal consequences.

The crackdown comes amid growing concerns over a perceived fuel and LPG shortage in the region.

K P Murali, president of the Tamil Nadu Petroleum Dealers' Association, appealed to the public to remain calm and avoid panic buying. He said the state currently has adequate petrol and diesel stocks to meet demand for at least the next three weeks.

"There is no need for the public to fear a shortage. All dealers have adequate stock and are continuously receiving supplies from oil companies. Panic buying will only create an artificial shortage that benefits no one," Murali told PTI.

According to him, Tamil Nadu has 14 terminals, including three in Chennai, that stock fuel and supply retail outlets.

"Dealers usually have three days' stock with them. And they buy from these terminals as and when they need. This is happening as usual. So, there is no need to panic," Murali added.

However, he agreed that the rumour might have started from some small outlets supplied by private companies.

"More than 7,000 dealers are associated with our organisation and they all have access to terminals to replenish their stock as per demand," Murali said.

Meanwhile, speaking at a traders’ association meeting in Tenkasi on March 12, A. M. Vikkrama Raja, president of the Tamil Nadu Vanigar Sangankalin Peramaipu, raised concerns about the impact of the shortage on the hospitality sector.

"The Union government must take action on a war footing to ensure that traders are not affected as they were during the Covid-19 period. Due to the cylinder shortage, items like 'dosa', 'poori', and 'parotta' are becoming unavailable in hotels. While we are doing our best to feed the people, some agencies are hoarding cylinders and selling them for as high as Rs 4,000. Authorities must conduct inspections and take strict action against such elements," Raja said.

Raja further cautioned that traders across the state would stage protests if fuel prices are increased citing the shortage. He also announced that a major traders’ conference will be held in Tiruvarur on May 5 to press for a special protection law for small-scale traders against the growing presence of multinational companies.

(With agency inputs)