‘An Alarming State of Affairs’: War on Iran Squeezes India's LPG Availability.
The ripple effects of a war being fought nearly a significant distance away are now being felt in India's households.
As US-Israeli strikes on Iran impede energy transports through the vital shipping lane, stocks of liquefied petroleum gas (LPG) are dwindling across India, forcing restaurants to cut menus, shorten hours and in some cases close completely.
Social media is flooded by video clips showing crowds outside cooking-gas dealers across Indian cities and towns as concerns over fuel supplies spread. Commercial LPG users appear the worst hit: the sharpest squeeze is in restaurant kitchens.
"The situation is dire. LPG simply is unavailable," says a spokesperson of the an industry group.
Most food outlets run either on industrial fuel canisters or pipeline-supplied fuel, and the scarcities are now being experienced across the country. "Many restaurants have shut down - some in northern India, many in the south. People are turning to solid fuels and electronic appliances to keep their operations going."
City-Specific Fallout
In Mumbai, accounts say up to a fifth of eateries are already completely or partially closed as business fuel stocks dwindle. In the southern cities of tech and coastal hubs, some restaurants say their gas stocks 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.
Restaurant owners are scrambling to adapt. "Offering lists are shrinking, some are opening only for dinner and reducing hours," an industry representative says, adding that shutdowns are changing as supplies wax and wane. "Three restaurants in Delhi were shut yesterday - two have already reopened. It's a changing landscape."
Retailers observe a surge in sales of electric cookers, with some saying they are running out of them.
Authority's View
Yet, the authorities maintains there is sufficient stock.
India has more than 300 million household consumers and authorities say supplies are being redirected to households as conflict-related stress from the war in the Gulf ripple through energy markets.
About six out of ten of India's LPG is brought in from overseas, and about 90% of those consignments pass through the key maritime route, the vital passage now effectively closed by the conflict.
The oil ministry says that it directed refineries to increase LPG output for household consumption, lifting domestic production by about 25%. Business-grade fuel is being reserved for vital industries such as hospitals and educational institutions, while distribution will be "fair and transparent".
"Some panic booking and accumulation has been sparked by misinformation. The standard supply timeline for home fuel remains about under three days," says a ministry representative.
Widening Concern
Now the anxiety is moving beyond kitchens. On digital platforms, a widely shared video from Chennai shows a long, snaking queue of two-wheelers outside a gas outlet. "The panic is real," the caption reads.
According to reports from energy specialists, concerns about India's broader petroleum stocks may be premature.
India imports 90% of its crude oil. Around half of its petroleum shipments - about 2.5-2.7 million barrels a day - travel through the waterway, largely from regional suppliers.
Even if oil shipments through the Strait of Hormuz are hindered, the deficit could be partly offset by higher imports of discounted Russian crude, according to a industry commentator.
Based on vessel tracking and expert analysis, increased Russian crude imports could reach around 1-1.2 million barrels a day, lessening India's effective deficit from exposure to the Strait of Hormuz to about 1.6 million barrels a day.
"A large quantity of Russian oil barrels are currently on the water in the Indian Ocean and, with only India and China as major buyers, those barrels remain a viable alternative," an analyst noted.
Kitchen Fuel: The Primary Concern
The primary concern is kitchen fuel, analysts say.
India consumes roughly a million barrels a day, but produces only less than half domestically, importing the rest - 80–90% through Hormuz.
Refineries can adjust processes to extract a bit more LPG, but even a limited rise would only raise domestic supply to about under half of demand, leaving the country significantly leaning on imports.
In short: "Petroleum shortage concerns can be moderately reduced through diversification. Processed petroleum stocks remains fairly adequate. Kitchen fuel stocks is the key factor to watch in the coming weeks."
What may be heightening the concern on the ground is not just limited availability but uneven distribution - and the usual problem of hoarding.
An industry representative claims exploitative practices.
"Distributors are taking advantage of the situation - illegally trading canisters and selling them at a inflated price. In one small town, I heard of cylinders being accumulated and sold at a premium."
For now, India's energy imports may be buffered by global trade flows. But in homes across the country, the more pressing concern is simple: how to get the next gas canister.
