Two persons have been arrested in Madurai for allegedly hoarding 398 LPG cylinders for black marketing, with authorities invoking the stringent Goondas Act for the first time in Tamil Nadu in connection with cylinder hoarding, police said on Friday.
Amid growing concerns about fuel and gas availability, Tamil Nadu Chief Minister M. K. Stalin urged the public not to panic.
In a post on X on March 12, CM Stalin appealed to people to remain calm and support the “efforts being undertaken by the Union Government.”
The Tamil Nadu Petroleum Dealers’ Association also advised the public against panic buying of petrol or diesel, stating that 14 fuel terminals across the state currently hold sufficient stock to supply more than 7,000 retail outlets according to demand.
The arrests in Madurai followed a tip-off received by the Civil Supplies Criminal Investigation Department (CS-CID) about the illegal diversion of subsidised domestic LPG cylinders for commercial purposes.
Acting on the information, a special team conducted a raid at an open plot near the residence of a man identified as Palani in the Kovilpappakudi area, where officials seized 100 subsidised domestic cylinders and 109 commercial cylinders.
In another raid at the house of Madan Kumar, 27, in Anandam Nagar, authorities recovered an additional 189 cylinders, including 126 commercial units.
A senior official said both accused have been booked under the Essential Commodities Act and later detained under the Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act, commonly known as the Goondas Act, by Madurai District Collector Praveen Kumar.
Officials from the CS-CID Madurai zone issued a warning that illegal hoarding of essential commodities would invite strict legal action.
The crackdown comes amid rising concerns about a perceived fuel and gas shortage in the region.
K. P. Murali, president of the Tamil Nadu Petroleum Dealers’ Association, urged the public not to panic or resort to panic buying. He said the state currently has enough petrol and diesel stocks to last for at least 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.
Murali explained that Tamil Nadu has 14 fuel terminals, including three in Chennai, which store and supply fuel to 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,” he added.
However, he suggested that rumours about shortages might have originated from a few 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, Indian Oil Corporation (IOC) has issued a directive to fuel dealers prohibiting the sale of petrol in plastic bottles, cans, or other loose containers, according to sources at petrol bunks.
The directive states that dispensing fuel in non-standard containers poses serious fire and security risks. Retail outlets have been instructed to ensure that petrol and diesel are dispensed only directly into vehicle fuel tanks.
Earlier, while addressing a traders’ association meeting in Tenkasi on March 12, A. M. Vikrama Raja, president of the Tamil Nadu Vanigar Sangankalin Peramaipu, expressed concern about the impact of the alleged 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 told reporters.
Raja also warned that traders across the state could launch protests if fuel prices are increased under the pretext of shortages. He further announced that a major traders’ conference would be held in Tiruvarur on May 5 to demand a special protection law for small-scale traders against the growing influence of multinational companies.
Meanwhile, the Tamil Nadu Congress Committee (TNCC) staged a protest led by its president K. Selvaperunthagai against the Union government’s foreign policies and the rising prices of petrol, diesel, and LPG cylinders.
Originally planned at Valluvar Kottam in Chennai, the demonstration was later shifted to Chintadripet, from where protesters began marching toward Egmore Railway Station at around 3 pm.
