‘The Situation is Dire’: War on Iran Tightens India's LPG Supplies.

The ripple effects of a conflict being fought nearly 3,000km away are now being felt in India's homes.

As US-Israeli strikes on Iran hinder energy transports through the vital shipping lane, availability of liquefied petroleum gas (LPG) are shrinking across India, forcing restaurants to shorten food lists, shorten hours and in some cases close completely.

Social media is flooded by video clips showing queues outside fuel suppliers across Indian urban and rural areas as worries over fuel supplies escalate. Restaurant kitchens appear the most affected: the most severe shortage is in commercial eateries.

"The state of affairs is alarming. Kitchen fuel simply cannot be found," says a spokesperson of the National Restaurant Association of India.

Most restaurants run either on commercial LPG cylinders or piped gas, and the lack of supply are now being experienced across the country. "A lot of restaurants have shut down - some in the capital, many in the southern region. People are adopting traditional burners and induction stoves to keep their operations going."

Regional Impact

In Mumbai, accounts say up to a fifth of eateries are already operating at reduced capacity as cylinder availability tighten. In the southern cities of tech and coastal hubs, some restaurants say their fuel reserves have shrunk with little backup. "Our menu is reduced to coffee and no other dishes - it is truly dismal. Commerce will take a hit," says a restaurant owner in Bengaluru.

Restaurant managers are scrambling to adapt. "Food options are being cut, some are opening only for dinner and reducing hours," an industry representative says, adding that stoppages are varying as supplies come and go. "Several establishments in Delhi were shut yesterday - two have already reopened. It's a dynamic scenario."

Retailers report a surge in sales of electric cookers, with some saying they are facing stockouts.

Government Stance

Yet, the government insists there is no shortage.

India has more than 30 crore home fuel subscribers and spokespersons say cylinders are being prioritized to households as geopolitical strain from the war in the Gulf affect energy markets.

Roughly 60% of India's LPG is sourced from abroad, and about 90% of those consignments pass through the key maritime route, the narrow Gulf chokepoint now effectively closed by the hostilities.

The petroleum ministry says that it ordered refineries to increase LPG output for household consumption, raising domestic production by about a significant margin. Commercial stock is being allocated for critical services such as healthcare and education, while distribution will be "just and open".

"A degree of anxious stocking and stockpiling has been caused by rumors. The normal delivery cycle for household cylinders remains about 60 hours," says a government spokesperson.

Widening Concern

Now the anxiety is extending beyond kitchens. On digital platforms, a widely shared video from Chennai shows a long, snaking queue of two-wheelers outside a fuel station. "Anxiety is palpable," the text reads.

According to analysis from industry analysts, concerns about India's broader petroleum stocks may be exaggerated.

India imports 90% of its petroleum. Around half of its crude oil imports - about 2.5-2.7 million barrels a day - travel through the waterway, largely from regional suppliers.

Even if petroleum transit through the Strait of Hormuz are blocked, the deficit could be partly made up by higher imports of Russian petroleum, according to a industry commentator.

Based on maritime intelligence and industry information, incremental 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 1.6 million barrels a day.

"Around 25-30 million Russian oil barrels are currently in transit at sea in the Indian Ocean and, with only two major Asian economies as major buyers, those barrels remain a available backup," an analyst noted.

Kitchen Fuel: The Primary Concern

The real vulnerability is cooking gas, experts note.

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 adjust processes to extract a bit more LPG, but even a limited rise would only increase domestic supply to about under half of demand, leaving the country significantly leaning on imports.

In short: "Petroleum shortage concerns can be partially mitigated through varied suppliers. Processed petroleum stocks remains fairly adequate. Kitchen fuel stocks is the real variable to monitor in the coming weeks."

What may be intensifying the panic on the ground is not just limited availability but uneven distribution - and the common threat of panic buying.

An industry representative claims exploitative practices.

"Suppliers are taking advantage of the situation - black-marketing cylinders and selling them at a premium. In one small town, I heard of cylinders being hoarded 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 immediate question is simple: how to get the next cylinder.