🔗 Share this article ‘A Critical Scenario’: Conflict on Iran Constricts India's LPG Stock. People queue up to buy LPG tanks for household consumption in Chennai. The repercussions of a conflict being fought nearly 3,000km away are now reaching India's kitchens. As US-Israeli strikes on Iran hinder energy transports through the key maritime chokepoint, stocks of liquefied petroleum gas (LPG) are tightening across India, pushing restaurants to cut menus, close earlier and in some cases close completely. Social media is filled with video clips showing queues outside cooking-gas dealers across Indian metros and localities as concerns over fuel supplies grow. Businesses appear the hardest struck: the most severe shortage is in restaurant kitchens. "The state of affairs is alarming. Cooking gas simply is unavailable," says a spokesperson of the National Restaurant Association of India. Most restaurants run either on business-grade gas tanks or pipeline-supplied fuel, and the scarcities are now being felt across the country. "A lot of restaurants have ceased operations - some in the capital, many in the south. People are turning to coal and wood and electronic appliances to keep kitchens going." Regional Impact In a financial hub, local news say up to a 20% of hospitality businesses are already operating at reduced capacity as commercial LPG supplies dry up. In the southern cities of Bangalore and Madras, some establishments say their cylinder inventory have shrunk with scarce alternatives. "We can only make coffee and no food items - it is nothing less than pathetic. Operations will be impacted," says a chain proprietor in Bengaluru. A eatery in a southern city which has shut down due to a lack of kitchen fuel. Restaurant managers are seeking alternatives. "Menus are being curtailed, some are opening only for dinner and opening only for dinner," an industry representative says, adding that stoppages are varying as supplies wax and wane. "A number of eateries in Delhi were shut yesterday - some have resumed operations. It's a changing landscape." Retailers note a spike in sales of electronic cooking appliances, with some saying they are selling out quickly. Government Stance Yet, the government insists there is no shortage. India has more than 300 million household consumers and officials say cylinders are being prioritized to households as geopolitical strain from the war in the Gulf ripple through energy markets. About a majority of India's LPG is brought in from overseas, and about nine out of ten of those imports pass through the critical waterway, the vital passage now significantly disrupted by the war. The petroleum ministry says that it ordered refineries to maximise LPG output for domestic use, enhancing domestic production by about a quarter. Commercial stock is being reserved for essential sectors such as healthcare and education, while distribution will be "equitable and clear". "A degree of anxious stocking and accumulation has been triggered by false reports. The normal delivery cycle for home fuel remains about 60 hours," says a senior official. Widening Concern Now the concern is spreading beyond kitchens. On digital platforms, a widely shared video from Chennai shows a extended procession of two-wheelers outside a petrol pump. "Concern is genuine," the text reads. India brings in up to a vast majority of the petroleum it requires, leaving it significantly susceptible to disruptions in global supplies. According to reports from market experts, concerns about India's broader petroleum stocks may be exaggerated. India imports almost all of its 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 petroleum transit through the Strait of Hormuz are hindered, the shortfall could be partly offset by higher imports of discounted Russian crude, according to a sector expert. Based on vessel tracking and expert analysis, increased Russian crude imports could reach around 1-1.2 million barrels a day, reducing India's effective gap from exposure to the Strait of Hormuz to about a substantial volume of 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 ready fallback," an analyst noted. Kitchen Fuel: The Primary Concern The key weakness is kitchen fuel, commentators observe. India consumes roughly 1 million barrels a day, but produces only a minority share domestically, importing the rest - 80–90% through the chokepoint. Refineries can tweak operations to extract a bit more LPG, but even a moderate increase would only lift domestic supply to about around half of demand, leaving the country largely dependent on imports. In short: "Crude supply risk can be moderately reduced through alternative sourcing. Fuel availability remains fairly adequate. Cooking gas supply is the critical issue to watch in the coming weeks." What may be worsening the anxiety on the ground is not just scarcity but uneven distribution - and the usual problem of stockpiling. An industry representative alleges price gouging. "Distributors are misusing the situation - selling fuel on the black market 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 oil supplies 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.
People queue up to buy LPG tanks for household consumption in Chennai. The repercussions of a conflict being fought nearly 3,000km away are now reaching India's kitchens. As US-Israeli strikes on Iran hinder energy transports through the key maritime chokepoint, stocks of liquefied petroleum gas (LPG) are tightening across India, pushing restaurants to cut menus, close earlier and in some cases close completely. Social media is filled with video clips showing queues outside cooking-gas dealers across Indian metros and localities as concerns over fuel supplies grow. Businesses appear the hardest struck: the most severe shortage is in restaurant kitchens. "The state of affairs is alarming. Cooking gas simply is unavailable," says a spokesperson of the National Restaurant Association of India. Most restaurants run either on business-grade gas tanks or pipeline-supplied fuel, and the scarcities are now being felt across the country. "A lot of restaurants have ceased operations - some in the capital, many in the south. People are turning to coal and wood and electronic appliances to keep kitchens going." Regional Impact In a financial hub, local news say up to a 20% of hospitality businesses are already operating at reduced capacity as commercial LPG supplies dry up. In the southern cities of Bangalore and Madras, some establishments say their cylinder inventory have shrunk with scarce alternatives. "We can only make coffee and no food items - it is nothing less than pathetic. Operations will be impacted," says a chain proprietor in Bengaluru. A eatery in a southern city which has shut down due to a lack of kitchen fuel. Restaurant managers are seeking alternatives. "Menus are being curtailed, some are opening only for dinner and opening only for dinner," an industry representative says, adding that stoppages are varying as supplies wax and wane. "A number of eateries in Delhi were shut yesterday - some have resumed operations. It's a changing landscape." Retailers note a spike in sales of electronic cooking appliances, with some saying they are selling out quickly. Government Stance Yet, the government insists there is no shortage. India has more than 300 million household consumers and officials say cylinders are being prioritized to households as geopolitical strain from the war in the Gulf ripple through energy markets. About a majority of India's LPG is brought in from overseas, and about nine out of ten of those imports pass through the critical waterway, the vital passage now significantly disrupted by the war. The petroleum ministry says that it ordered refineries to maximise LPG output for domestic use, enhancing domestic production by about a quarter. Commercial stock is being reserved for essential sectors such as healthcare and education, while distribution will be "equitable and clear". "A degree of anxious stocking and accumulation has been triggered by false reports. The normal delivery cycle for home fuel remains about 60 hours," says a senior official. Widening Concern Now the concern is spreading beyond kitchens. On digital platforms, a widely shared video from Chennai shows a extended procession of two-wheelers outside a petrol pump. "Concern is genuine," the text reads. India brings in up to a vast majority of the petroleum it requires, leaving it significantly susceptible to disruptions in global supplies. According to reports from market experts, concerns about India's broader petroleum stocks may be exaggerated. India imports almost all of its 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 petroleum transit through the Strait of Hormuz are hindered, the shortfall could be partly offset by higher imports of discounted Russian crude, according to a sector expert. Based on vessel tracking and expert analysis, increased Russian crude imports could reach around 1-1.2 million barrels a day, reducing India's effective gap from exposure to the Strait of Hormuz to about a substantial volume of 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 ready fallback," an analyst noted. Kitchen Fuel: The Primary Concern The key weakness is kitchen fuel, commentators observe. India consumes roughly 1 million barrels a day, but produces only a minority share domestically, importing the rest - 80–90% through the chokepoint. Refineries can tweak operations to extract a bit more LPG, but even a moderate increase would only lift domestic supply to about around half of demand, leaving the country largely dependent on imports. In short: "Crude supply risk can be moderately reduced through alternative sourcing. Fuel availability remains fairly adequate. Cooking gas supply is the critical issue to watch in the coming weeks." What may be worsening the anxiety on the ground is not just scarcity but uneven distribution - and the usual problem of stockpiling. An industry representative alleges price gouging. "Distributors are misusing the situation - selling fuel on the black market 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 oil supplies 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.