‘An Alarming State of Affairs’: Hostilities on Iran Constricts India's LPG Supplies.

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

As US-Israeli strikes on Iran disrupt energy shipments through the key maritime chokepoint, availability of liquefied petroleum gas (LPG) are dwindling across India, forcing restaurants to cut menus, close earlier and in some cases close completely.

Social media is flooded by video clips showing crowds outside LPG distributors across Indian urban and rural areas as concerns over fuel supplies spread. Restaurant kitchens appear the worst hit: the biggest crunch is in commercial eateries.

"The state of affairs is alarming. LPG simply isn't available," says a spokesperson of the National Restaurant Association of India.

Most eateries run either on business-grade gas tanks or piped gas, and the scarcities are now being noticed across the country. "Many restaurants have ceased operations - some in Delhi, many in the southern region. People are adopting coal and wood and electric cookers to keep kitchens going."

City-Specific Fallout

In a western metro, accounts say up to a 20% of hospitality businesses are already completely or partially closed as commercial LPG supplies tighten. In the southern cities of Bengaluru and Chennai, some eateries say their gas stocks have depleted with scarce alternatives. "We can only make coffee and no other dishes - it is extremely difficult. Commerce will take a hit," says a restaurant owner in Bengaluru.

Restaurant operators are seeking alternatives. "Offering lists are shrinking, some are opening only for dinner and reducing hours," an industry representative says, adding that shutdowns are fluctuating as supplies ebb and flow. "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 states there is adequate supply.

India has more than 30 crore domestic LPG users and officials say cylinders are being prioritized to households as geopolitical strain from the Middle East conflict ripple through energy markets.

About six out of ten of India's LPG is imported, and about nine out of ten of those consignments pass through the Strait of Hormuz, the narrow Gulf chokepoint now effectively closed by the conflict.

The petroleum ministry says that it ordered refineries to increase LPG output for home needs, lifting domestic production by about 25%. Non-domestic supply is being prioritised for vital industries such as medical and academic centers, while distribution will be "fair and transparent".

"A degree of anxious stocking and stockpiling has been sparked by misinformation. The normal delivery cycle for home fuel remains about two-and-a-half days," says a government spokesperson.

Growing Panic

Now the concern is extending 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 data from energy specialists, concerns about India's broader fuel supplies may be exaggerated.

India imports the overwhelming majority of its crude oil. Around 50% of its petroleum shipments - about millions of barrels a day - travel through the passage, largely from Gulf countries.

Even if crude flows 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 credible market sources, incremental Russian crude imports could reach around a significant volume of barrels a day, reducing India's effective deficit from exposure to the Strait of Hormuz to about 1.6 million barrels a day.

"Tens of millions of Russian oil barrels are currently floating on ships in the Indian Ocean and, with only India and China as major buyers, those barrels remain a available backup," an analyst noted.

LPG: The Real Vulnerability

The real vulnerability is kitchen fuel, commentators observe.

India consumes roughly a million barrels a day, but produces only a minority share domestically, importing the rest - 80–90% through Hormuz.

Refineries can adjust processes to produce a bit more LPG, but even a limited rise would only raise domestic supply to about 47-50% of demand, leaving the country largely dependent on imports.

In short: "Oil import vulnerability can be moderately reduced through alternative sourcing. Fuel availability remains relatively comfortable. Kitchen fuel stocks is the key factor to monitor in the coming weeks."

What may be worsening the panic on the ground is not just scarcity but uneven distribution - and the familiar spectre of hoarding.

An industry representative claims opportunistic profiteering.

"Suppliers are misusing the situation - selling fuel on the black market and selling them at a premium. In one small town, I heard of cylinders being stockpiled and auctioned off."

For now, India's energy imports may be protected by worldwide shipping. But in restaurants across the country, the more urgent issue is simple: how to get the next cylinder.