‘The Situation is Dire’: Conflict on Iran Squeezes India's LPG Availability.

The repercussions of a war being fought nearly 3,000km away are now reaching India's households.

As US-Israeli strikes on Iran disrupt energy shipments through the key maritime chokepoint, availability of cooking gas are dwindling across India, forcing restaurants to reduce offerings, close earlier and in some cases cease operations entirely.

Social media is awash with video clips showing queues outside cooking-gas dealers across Indian urban and rural areas as concerns over fuel supplies spread. Restaurant kitchens appear the hardest struck: the most severe shortage is in food service establishments.

"The state of affairs is alarming. Cooking gas simply isn't available," says a representative of the an industry group.

Most eateries run either on commercial LPG cylinders or direct gas lines, and the lack of supply are now being experienced across the country. "Numerous restaurants have closed - some in Delhi, many in the south. People are adopting coal and wood and electronic appliances to keep their operations going."

Localized Effects

In a financial hub, local news say up to a 20% of hotels and restaurants are already completely or partially closed as business fuel stocks dry up. In the southern cities of tech and coastal hubs, some restaurants say their fuel reserves have dwindled with little backup. "Coffee is the sole item we can prepare and no food items - it is extremely difficult. Businesses are going to suffer," says a restaurant owner in Bengaluru.

Restaurant managers are scrambling to adapt. "Offering lists are shrinking, some are skipping midday meals and operating solely in the evening," an industry representative says, adding that closures are fluctuating as supplies wax and wane. "A number of eateries in Delhi were shut yesterday - a couple are back in business. It's a dynamic scenario."

Retailers observe a increase in sales of electronic cooking appliances, with some saying they are selling out quickly.

Authority's View

Yet, the officials states there is sufficient stock.

India has more than a vast number of home fuel subscribers and officials say stocks are being reallocated to households as conflict-related stress from the regional hostilities ripple through energy markets.

Approximately six out of ten of India's LPG is sourced from abroad, and about 90% of those consignments pass through the critical waterway, the narrow Gulf chokepoint now significantly disrupted by the war.

The petroleum ministry says that it instructed refineries to boost LPG output for domestic use, enhancing domestic production by about a significant margin. Commercial stock is being allocated for critical services such as medical and academic centers, while distribution will be "equitable and clear".

"Unnecessary hoarding and accumulation has been triggered by rumors. The normal delivery cycle for home fuel remains about two-and-a-half days," says a ministry representative.

Growing Panic

Now the anxiety is spreading beyond kitchens. On online networks, a widely shared video from Chennai shows a long, snaking queue of scooters outside a fuel station. "Concern is genuine," the description reads.

According to data from energy specialists, concerns about India's broader fuel supplies may be premature.

India imports the overwhelming majority of its crude oil. Around 50% 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 blocked, the deficit could be partly offset by higher imports of competitively priced oil from Russia, according to a industry commentator.

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 deficit from exposure to the Strait of Hormuz to about a substantial volume of barrels a day.

"A large quantity 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 ready fallback," an analyst noted.

LPG: The Real Vulnerability

The key weakness is kitchen fuel, experts note.

India consumes roughly 1 million barrels a day, but produces only less than half domestically, importing the rest - 80–90% through Hormuz.

Refineries can tweak operations to produce a bit more LPG, but even a limited rise would only raise domestic supply to about under half of demand, leaving the country largely dependent on imports.

In short: "Crude supply risk can be somewhat alleviated through diversification. Refined product supply remains fairly adequate. Cooking gas supply is the real variable to watch in the coming weeks."

What may be heightening the concern on the ground is not just scarcity but uneven distribution - and the usual problem of stockpiling.

An industry representative alleges price gouging.

"Retailers are taking advantage of the situation - selling fuel on the black market 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 buffered by global trade flows. But in restaurants across the country, the more urgent issue is simple: how to get the next gas canister.