🔗 Share this article ‘The Situation is Dire’: Hostilities on Iran Squeezes India's LPG Supplies. People wait in lines to buy fuel canisters for household consumption in a major Indian city. The repercussions of a military engagement being fought nearly 1,864 miles away are now impacting India's kitchens. As military actions on Iran hinder energy deliveries through the vital shipping lane, stocks of cooking gas are shrinking across India, forcing restaurants to cut menus, reduce operating times and in some cases cease operations entirely. Social media is awash with video clips showing crowds outside cooking-gas dealers across Indian cities and towns as concerns over fuel supplies escalate. Restaurant kitchens appear the hardest struck: the most severe shortage is in food service establishments. "Conditions are critical. LPG simply isn't available," says a spokesperson of the National Restaurant Association of India. Most food outlets run either on industrial fuel canisters or direct gas lines, and the lack of supply are now being noticed across the country. "Many restaurants have closed - some in the capital, many in the southern states. People are switching to coal and wood and induction stoves to keep food preparation going." Localized Effects In a financial hub, accounts say up to a fifth of hotels and restaurants are already operating at reduced capacity as business fuel stocks dry up. In the southern cities of tech and coastal hubs, some restaurants say their gas stocks have depleted with scarce alternatives. "Our menu is reduced to coffee and no food items - it is nothing less than pathetic. Businesses are going to suffer," says a chain proprietor in Bengaluru. A eatery in Chennai which has closed its doors due to a scarcity of kitchen fuel. Restaurant owners are scrambling to adapt. "Food options are being cut, some are opening only for dinner and reducing hours," an industry representative says, adding that shutdowns are varying as supplies ebb and flow. "Several establishments in Delhi were shut yesterday - a couple are back in business. It's a fluid situation." Retailers observe a surge in sales of electric cookers, with some saying they are running out of them. Government Stance Yet, the authorities maintains there is adequate supply. India has more than 300 million household consumers and authorities say cylinders are being prioritized to households as geopolitical strain from the regional hostilities impact energy markets. Approximately six out of ten of India's LPG is sourced from abroad, and about nine out of ten of those consignments pass through the key maritime route, the vital passage now effectively closed by the conflict. The oil ministry says that it instructed refineries to maximise LPG output for domestic use, enhancing domestic production by about a quarter. Non-domestic supply is being reserved for critical services such as healthcare and education, while distribution will be "fair and transparent". "A degree of anxious stocking and accumulation has been sparked by rumors. The regular refill period for domestic LPG remains about 60 hours," says a senior official. Spreading Anxiety Now the anxiety is extending beyond kitchens. On digital platforms, a widely shared video from Chennai shows a lengthy, winding line of scooters outside a petrol pump. "Concern is genuine," the description reads. India brings in up to 90% of the petroleum it requires, leaving it highly exposed to disruptions in worldwide shipments. According to analysis from energy specialists, concerns about India's broader petroleum stocks may be overstated. India imports almost all of its petroleum. Around 50% of its crude oil imports - about millions of barrels a day - travel through the waterway, largely from regional suppliers. Even if petroleum transit through the Strait of Hormuz are hindered, the shortfall could be partly compensated for by higher imports of discounted Russian crude, according to a refinery and oil markets analyst. Based on vessel tracking and industry information, additional Russian crude imports could reach around 1-1.2 million barrels a day, reducing India's effective shortfall from exposure to the Strait of Hormuz to about a substantial volume of barrels a day. "Tens of millions of 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 available backup," an analyst noted. LPG: The Real Vulnerability The key weakness is kitchen fuel, analysts say. India consumes roughly one million barrels a day, but produces only a minority share domestically, importing the rest - 80–90% through the Strait. Refineries can adjust processes to produce a bit more LPG, but even a moderate increase would only lift domestic supply to about under half of demand, leaving the country heavily reliant on imports. In short: "Oil import vulnerability can be somewhat alleviated through varied suppliers. Processed petroleum stocks remains largely sufficient. LPG availability is the key factor to track in the coming weeks." What may be worsening the panic on the ground is not just scarcity but patchy deliveries - and the usual problem of hoarding. An industry representative alleges price gouging. "Suppliers are misusing the situation - black-marketing cylinders and selling them at a high cost. In one small town, I heard of cylinders being stockpiled and sold to the highest bidder." For now, India's energy imports may be protected by international market dynamics. But in restaurants across the country, the more urgent issue is simple: how to get the next refill.
People wait in lines to buy fuel canisters for household consumption in a major Indian city. The repercussions of a military engagement being fought nearly 1,864 miles away are now impacting India's kitchens. As military actions on Iran hinder energy deliveries through the vital shipping lane, stocks of cooking gas are shrinking across India, forcing restaurants to cut menus, reduce operating times and in some cases cease operations entirely. Social media is awash with video clips showing crowds outside cooking-gas dealers across Indian cities and towns as concerns over fuel supplies escalate. Restaurant kitchens appear the hardest struck: the most severe shortage is in food service establishments. "Conditions are critical. LPG simply isn't available," says a spokesperson of the National Restaurant Association of India. Most food outlets run either on industrial fuel canisters or direct gas lines, and the lack of supply are now being noticed across the country. "Many restaurants have closed - some in the capital, many in the southern states. People are switching to coal and wood and induction stoves to keep food preparation going." Localized Effects In a financial hub, accounts say up to a fifth of hotels and restaurants are already operating at reduced capacity as business fuel stocks dry up. In the southern cities of tech and coastal hubs, some restaurants say their gas stocks have depleted with scarce alternatives. "Our menu is reduced to coffee and no food items - it is nothing less than pathetic. Businesses are going to suffer," says a chain proprietor in Bengaluru. A eatery in Chennai which has closed its doors due to a scarcity of kitchen fuel. Restaurant owners are scrambling to adapt. "Food options are being cut, some are opening only for dinner and reducing hours," an industry representative says, adding that shutdowns are varying as supplies ebb and flow. "Several establishments in Delhi were shut yesterday - a couple are back in business. It's a fluid situation." Retailers observe a surge in sales of electric cookers, with some saying they are running out of them. Government Stance Yet, the authorities maintains there is adequate supply. India has more than 300 million household consumers and authorities say cylinders are being prioritized to households as geopolitical strain from the regional hostilities impact energy markets. Approximately six out of ten of India's LPG is sourced from abroad, and about nine out of ten of those consignments pass through the key maritime route, the vital passage now effectively closed by the conflict. The oil ministry says that it instructed refineries to maximise LPG output for domestic use, enhancing domestic production by about a quarter. Non-domestic supply is being reserved for critical services such as healthcare and education, while distribution will be "fair and transparent". "A degree of anxious stocking and accumulation has been sparked by rumors. The regular refill period for domestic LPG remains about 60 hours," says a senior official. Spreading Anxiety Now the anxiety is extending beyond kitchens. On digital platforms, a widely shared video from Chennai shows a lengthy, winding line of scooters outside a petrol pump. "Concern is genuine," the description reads. India brings in up to 90% of the petroleum it requires, leaving it highly exposed to disruptions in worldwide shipments. According to analysis from energy specialists, concerns about India's broader petroleum stocks may be overstated. India imports almost all of its petroleum. Around 50% of its crude oil imports - about millions of barrels a day - travel through the waterway, largely from regional suppliers. Even if petroleum transit through the Strait of Hormuz are hindered, the shortfall could be partly compensated for by higher imports of discounted Russian crude, according to a refinery and oil markets analyst. Based on vessel tracking and industry information, additional Russian crude imports could reach around 1-1.2 million barrels a day, reducing India's effective shortfall from exposure to the Strait of Hormuz to about a substantial volume of barrels a day. "Tens of millions of 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 available backup," an analyst noted. LPG: The Real Vulnerability The key weakness is kitchen fuel, analysts say. India consumes roughly one million barrels a day, but produces only a minority share domestically, importing the rest - 80–90% through the Strait. Refineries can adjust processes to produce a bit more LPG, but even a moderate increase would only lift domestic supply to about under half of demand, leaving the country heavily reliant on imports. In short: "Oil import vulnerability can be somewhat alleviated through varied suppliers. Processed petroleum stocks remains largely sufficient. LPG availability is the key factor to track in the coming weeks." What may be worsening the panic on the ground is not just scarcity but patchy deliveries - and the usual problem of hoarding. An industry representative alleges price gouging. "Suppliers are misusing the situation - black-marketing cylinders and selling them at a high cost. In one small town, I heard of cylinders being stockpiled and sold to the highest bidder." For now, India's energy imports may be protected by international market dynamics. But in restaurants across the country, the more urgent issue is simple: how to get the next refill.