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

The shockwaves of a war being fought nearly 1,864 miles away are now impacting India's kitchens.

As aerial attacks on Iran impede energy deliveries through the vital shipping lane, supplies of liquefied petroleum gas (LPG) are dwindling across India, forcing restaurants to cut menus, reduce operating times and in some cases cease operations entirely.

Social media is awash with video clips showing lines outside fuel suppliers across Indian urban and rural areas as anxieties over fuel supplies escalate. Restaurant kitchens appear the most affected: the sharpest squeeze is in restaurant kitchens.

"Conditions are critical. Cooking gas simply isn't available," says a official of the National Restaurant Association of India.

Most eateries run either on business-grade gas tanks or pipeline-supplied fuel, and the lack of supply are now being felt across the country. "Numerous restaurants have closed - some in northern India, many in the southern states. People are adopting traditional burners and electronic appliances to keep kitchens going."

Localized Effects

In a financial hub, local news say up to a significant portion of eateries are already operating at reduced capacity as business fuel stocks tighten. In the southern cities of tech and coastal hubs, some restaurants say their cylinder inventory have depleted with little backup. "We can only make coffee and no other dishes - it is truly dismal. Operations will be impacted," says a restaurant owner in Bengaluru.

Restaurant owners are seeking alternatives. "Food options are being cut, some are cutting lunch service and reducing hours," an industry representative says, adding that closures are varying as supplies wax and wane. "Several establishments in Delhi were shut yesterday - some have resumed operations. It's a fluid situation."

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

Government Stance

Yet, the officials insists there is sufficient stock.

India has more than a vast number of domestic LPG users and officials say cylinders are being prioritized to households as conflict-related stress from the regional hostilities impact energy markets.

About six out of ten of India's LPG is imported, and about 90% of those shipments pass through the Strait of Hormuz, the narrow Gulf chokepoint now largely blocked by the conflict.

The oil ministry says that it instructed refineries to increase LPG output for home needs, enhancing domestic production by about a significant margin. Business-grade fuel is being reserved for vital industries such as hospitals and educational institutions, while distribution will be "just and open".

"Some panic booking and hoarding has been sparked by rumors. The normal delivery cycle for household cylinders remains about under three days," says a senior official.

Widening Concern

Now the anxiety is spreading beyond kitchens. On social media, a widely shared video from Chennai shows a long, snaking queue of scooters outside a fuel station. "The panic is real," the caption reads.

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

India imports almost all of its crude oil. Around half of its petroleum shipments - about 2.5-2.7 million barrels a day - travel through the strait, largely from Middle Eastern nations.

Even if oil shipments through the Strait of Hormuz are disrupted, the gap could be partly made up by higher imports of competitively priced oil from Russia, according to a refinery and oil markets analyst.

Based on shipping data and expert analysis, additional Russian crude imports could reach around 1-1.2 million barrels a day, reducing India's effective shortfall 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 two major Asian economies as major buyers, those barrels remain a available backup," an analyst noted.

Cooking Gas: The Critical Weakness

The primary concern is kitchen fuel, commentators observe.

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

Refineries can adjust processes to squeeze out a bit more LPG, but even a moderate increase would only lift domestic supply to about around half of demand, leaving the country significantly leaning on imports.

In short: "Crude supply risk can be partially mitigated through alternative sourcing. Refined product supply remains largely sufficient. LPG availability is the real variable to monitor in the coming weeks."

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

An industry representative claims exploitative practices.

"Suppliers are exploiting the situation - selling fuel on the black market and selling them at a premium. In one small town, I heard of cylinders being hoarded and sold at a premium."

For now, India's oil supplies may be buffered by global trade flows. But in homes across the country, the more urgent issue is simple: how to get the next cylinder.