2 held for hoarding 398 LPG cylinders; officials say no need to panic buy fuel

Two persons were detained under the Goondas Act in Madurai for hoarding 398 LPG cylinders for black marketing, the first such action in Tamil Nadu. Authorities assured adequate fuel supplies, urging the public to avoid panic buying despite rumours of shortages

Madurai/Tenkasi/Chennai: Two persons were arrested and detained under the Goondas Act in Madurai for allegedly hoarding 398 LPG cylinders for black marketing, marking the first time such stringent action has been taken in Tamil Nadu for cylinder hoarding, police said on Friday.

Meanwhile, Tamil Nadu Petroleum Dealers’ Association urged people not to panic-buy petrol or diesel, stating that 14 terminals in Tamil Nadu have enough stock to replenish 7,000-plus retail outlets as per their demand.

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The arrests in Madurai followed a tip-off received by the Civil Supplies Criminal Investigation Department (CS-CID) regarding the illegal diversion of subsidised domestic gas cylinders for commercial use.

Acting on the information, a special team conducted a raid at an open plot near the residence of Palani in the Kovilpappakudi area, where they seized 100 subsidised domestic cylinders and 109 commercial cylinders.

In a subsequent raid at the house of Madan Kumar, 27, in Anandam Nagar, officials recovered another 189 cylinders, including 63 domestic and 126 commercial units.

A senior official stated that both accused have been booked under the Essential Commodities Act and were subsequently 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.

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 rising concerns over a perceived fuel and gas shortage in the region.

KP Murali, President of the Tamil Nadu Petroleum Dealers’ Association, urged the public not to panic or indulge in panic buying.

He clarified that the state currently holds sufficient stocks of petrol and diesel 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.

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 like Shell running dry.

“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, addressing a traders’ association meeting in Tenkasi on March 12, A M Vikkrama Raja, President of the Tamil Nadu Vanigar Sangankalin Peramaipu, expressed concern over 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 told reporters.

Raja further warned of state-wide protests if fuel prices are hiked under the pretext of shortage. He also announced a major traders’ conference in Tiruvarur on May 5 to demand a special protection law for small-scale traders against the encroachment of multinational companies.