‘The Situation is Dire’: Hostilities on Iran Constricts India's LPG Stock.
The repercussions of a conflict being fought nearly 1,864 miles away are now reaching India's homes.
As military actions on Iran impede energy shipments through the key maritime chokepoint, supplies of cooking gas are tightening across India, pushing restaurants to cut menus, close earlier and in some cases shut down altogether.
Social media is flooded by video clips showing crowds outside fuel suppliers across Indian cities and towns as anxieties over fuel supplies escalate. Restaurant kitchens appear the most affected: the sharpest squeeze is in commercial eateries.
"The situation is dire. LPG simply isn't available," says a official of the National Restaurant Association of India.
Most restaurants run either on commercial LPG cylinders or pipeline-supplied fuel, and the shortages are now being experienced across the country. "Many restaurants have closed - some in Delhi, many in the south. People are switching to coal and wood and induction stoves to keep food preparation going."
Localized Effects
In Mumbai, accounts say up to a 20% of hotels and restaurants are already completely or partially closed as commercial LPG supplies tighten. In the southern cities of tech and coastal hubs, some restaurants say their gas stocks have depleted with scarce alternatives. "Coffee is the sole item we can prepare and nothing else - it is truly dismal. Businesses are going to suffer," says a chain proprietor in Bengaluru.
Restaurant operators are scrambling to adapt. "Menus are being curtailed, some are opening only for dinner and operating solely in the evening," an industry representative says, adding that stoppages are fluctuating as supplies come and go. "Three restaurants in Delhi were shut yesterday - a couple are back in business. It's a dynamic scenario."
Retailers report a surge in sales of induction stoves, with some saying they are facing stockouts.
Authority's View
Yet, the authorities states there is sufficient stock.
India has more than 30 crore domestic LPG users and authorities say cylinders are being prioritized to households as geopolitical strain from the Middle East conflict impact energy markets.
About six out of ten of India's LPG is brought in from overseas, and about the vast majority of those shipments pass through the key maritime route, the vital passage now effectively closed by the war.
The oil ministry says that it instructed refineries to boost LPG output for domestic use, enhancing domestic production by about 25%. Non-domestic supply is being prioritised for vital industries such as medical and academic centers, while distribution will be "fair and transparent".
"Some panic booking and accumulation has been sparked by false reports. The standard supply timeline for home fuel remains about two-and-a-half days," says a ministry representative.
Growing Panic
Now the anxiety is spreading beyond kitchens. On digital platforms, a widely shared video from Chennai shows a extended procession of two-wheelers outside a fuel station. "Concern is genuine," the description reads.
According to reports from energy specialists, concerns about India's broader energy security may be overstated.
India imports the overwhelming majority of its oil. Around a significant portion of its oil purchases - about millions of barrels a day - travel through the passage, largely from regional suppliers.
Even if crude flows through the Strait of Hormuz are disrupted, the deficit could be partly made up by higher imports of discounted Russian crude, according to a industry commentator.
Based on vessel tracking and expert analysis, additional Russian crude imports could reach around 1-1.2 million barrels a day, lessening India's effective gap from exposure to the Strait of Hormuz to about a substantial volume of barrels a day.
"Around 25-30 million Russian oil barrels are currently floating on ships in the Indian Ocean and, with only two major Asian economies as major buyers, those barrels remain a ready fallback," an analyst noted.
LPG: The Real Vulnerability
The key weakness is cooking gas, analysts say.
India consumes roughly one million barrels a day, but produces only less than half domestically, importing the rest - 80–90% through the Strait.
Refineries can modify output to extract a bit more LPG, but even a 10-20% boost would only lift domestic supply to about 47-50% of demand, leaving the country heavily reliant on imports.
In short: "Crude supply risk can be moderately reduced through varied suppliers. Refined product supply remains largely sufficient. Kitchen fuel stocks is the real variable to monitor in the coming weeks."
What may be intensifying the anxiety on the ground is not just tight supply but erratic supply chains - and the usual problem of panic buying.
An industry representative alleges price gouging.
"Suppliers are misusing the situation - illegally trading canisters and selling them at a high cost. In one small town, I heard of cylinders being accumulated and sold at a premium."
For now, India's energy imports may be cushioned by global trade flows. But in restaurants across the country, the more urgent issue is simple: how to get the next cylinder.
