🔗 Share this article ‘The Situation is Dire’: Hostilities on Iran Constricts India's LPG Supplies. People line up to buy fuel canisters for home cooking in an urban center. The ripple effects of a conflict being fought nearly 1,864 miles away are now reaching India's kitchens. As US-Israeli strikes on Iran hinder energy transports through the vital shipping lane, stocks of liquefied petroleum gas (LPG) are dwindling across India, pushing restaurants to reduce offerings, reduce operating times and in some cases shut down altogether. Social media is filled with video clips showing queues outside LPG distributors across Indian cities and towns as concerns over fuel supplies grow. Commercial LPG users appear the worst hit: the biggest crunch is in commercial eateries. "The situation is dire. Kitchen fuel simply cannot be found," says a spokesperson of the National Restaurant Association of India. Most food outlets run either on business-grade gas tanks or piped gas, and the scarcities are now being experienced across the country. "Numerous restaurants have closed - some in Delhi, many in the southern region. People are turning to traditional burners and induction stoves to keep food preparation going." Localized Effects In Mumbai, accounts say up to a significant portion of hospitality businesses are already fully or partly shut as commercial LPG supplies tighten. In the southern cities of tech and coastal hubs, some restaurants say their cylinder inventory have depleted with little backup. "Our menu is reduced to coffee and no food items - it is truly dismal. Operations will be impacted," says a chain proprietor in Bengaluru. A food joint in a southern city which has ceased operations due to a scarcity of cooking gas. Restaurant managers are rushing to adjust. "Menus are being curtailed, some are cutting lunch service and opening only for dinner," an industry representative says, adding that closures are changing as supplies come and go. "A number of eateries in Delhi were shut yesterday - a couple are back in business. It's a dynamic scenario." Retailers note a surge in sales of induction stoves, with some saying they are facing stockouts. Official Position Yet, the authorities maintains there is adequate supply. India has more than 300 million domestic LPG users and officials say stocks are being redirected to households as tensions from the regional hostilities affect energy markets. About 60% of India's LPG is imported, and about nine out of ten of those imports pass through the critical waterway, the narrow Gulf chokepoint now effectively closed by the hostilities. The oil ministry says that it directed refineries to maximise LPG output for household consumption, enhancing domestic production by about a quarter. Business-grade fuel is being reserved for critical services such as hospitals and educational institutions, while distribution will be "just and open". "A degree of anxious stocking and accumulation has been triggered by false reports. The standard supply timeline for home fuel remains about two-and-a-half days," says a senior official. Widening Concern Now the anxiety is spreading beyond kitchens. On online networks, a widely shared video from Chennai shows a lengthy, winding line of motorbikes outside a fuel station. "The panic is real," the caption reads. India sources up to most of the oil it requires, leaving it significantly susceptible to disruptions in global supplies. According to data from energy specialists, concerns about India's broader petroleum stocks may be exaggerated. India imports almost all of its petroleum. Around half of its oil purchases - about 2.5 to 2.7 million barrels a day - travel through the waterway, largely from Middle Eastern nations. Even if petroleum transit through the Strait of Hormuz are disrupted, the gap could be partly compensated for by higher imports of discounted Russian crude, according to a industry commentator. Based on vessel tracking and industry information, additional Russian crude imports could reach around a significant volume of barrels a day, reducing India's effective shortfall 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 in transit at sea in the Indian Ocean and, with only India and China as major buyers, those barrels remain a available backup," an analyst noted. Cooking Gas: The Critical Weakness The primary concern is cooking gas, analysts say. India consumes roughly one million barrels a day, but produces only 40-45% domestically, importing the rest - the vast majority through the Strait. Refineries can adjust processes to produce a bit more LPG, but even a 10-20% boost would only lift domestic supply to about around half of demand, leaving the country heavily reliant on imports. In short: "Crude supply risk can be moderately reduced through alternative sourcing. Refined product supply remains relatively comfortable. Cooking gas supply is the critical issue to monitor in the coming weeks." What may be heightening the concern on the ground is not just limited availability but erratic supply chains - and the common threat of hoarding. An industry representative states opportunistic profiteering. "Distributors are taking advantage of the situation - illegally trading canisters and selling them at a high cost. In one small town, I heard of cylinders being hoarded and sold at a premium." For now, India's energy imports may be cushioned by international market dynamics. But in restaurants across the country, the more pressing concern is simple: how to get the next refill.
People line up to buy fuel canisters for home cooking in an urban center. The ripple effects of a conflict being fought nearly 1,864 miles away are now reaching India's kitchens. As US-Israeli strikes on Iran hinder energy transports through the vital shipping lane, stocks of liquefied petroleum gas (LPG) are dwindling across India, pushing restaurants to reduce offerings, reduce operating times and in some cases shut down altogether. Social media is filled with video clips showing queues outside LPG distributors across Indian cities and towns as concerns over fuel supplies grow. Commercial LPG users appear the worst hit: the biggest crunch is in commercial eateries. "The situation is dire. Kitchen fuel simply cannot be found," says a spokesperson of the National Restaurant Association of India. Most food outlets run either on business-grade gas tanks or piped gas, and the scarcities are now being experienced across the country. "Numerous restaurants have closed - some in Delhi, many in the southern region. People are turning to traditional burners and induction stoves to keep food preparation going." Localized Effects In Mumbai, accounts say up to a significant portion of hospitality businesses are already fully or partly shut as commercial LPG supplies tighten. In the southern cities of tech and coastal hubs, some restaurants say their cylinder inventory have depleted with little backup. "Our menu is reduced to coffee and no food items - it is truly dismal. Operations will be impacted," says a chain proprietor in Bengaluru. A food joint in a southern city which has ceased operations due to a scarcity of cooking gas. Restaurant managers are rushing to adjust. "Menus are being curtailed, some are cutting lunch service and opening only for dinner," an industry representative says, adding that closures are changing as supplies come and go. "A number of eateries in Delhi were shut yesterday - a couple are back in business. It's a dynamic scenario." Retailers note a surge in sales of induction stoves, with some saying they are facing stockouts. Official Position Yet, the authorities maintains there is adequate supply. India has more than 300 million domestic LPG users and officials say stocks are being redirected to households as tensions from the regional hostilities affect energy markets. About 60% of India's LPG is imported, and about nine out of ten of those imports pass through the critical waterway, the narrow Gulf chokepoint now effectively closed by the hostilities. The oil ministry says that it directed refineries to maximise LPG output for household consumption, enhancing domestic production by about a quarter. Business-grade fuel is being reserved for critical services such as hospitals and educational institutions, while distribution will be "just and open". "A degree of anxious stocking and accumulation has been triggered by false reports. The standard supply timeline for home fuel remains about two-and-a-half days," says a senior official. Widening Concern Now the anxiety is spreading beyond kitchens. On online networks, a widely shared video from Chennai shows a lengthy, winding line of motorbikes outside a fuel station. "The panic is real," the caption reads. India sources up to most of the oil it requires, leaving it significantly susceptible to disruptions in global supplies. According to data from energy specialists, concerns about India's broader petroleum stocks may be exaggerated. India imports almost all of its petroleum. Around half of its oil purchases - about 2.5 to 2.7 million barrels a day - travel through the waterway, largely from Middle Eastern nations. Even if petroleum transit through the Strait of Hormuz are disrupted, the gap could be partly compensated for by higher imports of discounted Russian crude, according to a industry commentator. Based on vessel tracking and industry information, additional Russian crude imports could reach around a significant volume of barrels a day, reducing India's effective shortfall 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 in transit at sea in the Indian Ocean and, with only India and China as major buyers, those barrels remain a available backup," an analyst noted. Cooking Gas: The Critical Weakness The primary concern is cooking gas, analysts say. India consumes roughly one million barrels a day, but produces only 40-45% domestically, importing the rest - the vast majority through the Strait. Refineries can adjust processes to produce a bit more LPG, but even a 10-20% boost would only lift domestic supply to about around half of demand, leaving the country heavily reliant on imports. In short: "Crude supply risk can be moderately reduced through alternative sourcing. Refined product supply remains relatively comfortable. Cooking gas supply is the critical issue to monitor in the coming weeks." What may be heightening the concern on the ground is not just limited availability but erratic supply chains - and the common threat of hoarding. An industry representative states opportunistic profiteering. "Distributors are taking advantage of the situation - illegally trading canisters and selling them at a high cost. In one small town, I heard of cylinders being hoarded and sold at a premium." For now, India's energy imports may be cushioned by international market dynamics. But in restaurants across the country, the more pressing concern is simple: how to get the next refill.