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

People queue up to buy cooking gas cylinders for domestic use in an Indian city
People wait in lines to buy fuel canisters for domestic use in a major Indian city.

The ripple effects of a war being fought nearly 3,000km away are now impacting India's kitchens.

As military actions on Iran hinder energy transports through the key maritime chokepoint, stocks of kitchen fuel are dwindling across India, forcing restaurants to cut menus, reduce operating times and in some cases close completely.

Social media is flooded by video clips showing queues outside cooking-gas dealers across Indian cities and towns as worries over fuel supplies escalate. Restaurant kitchens appear the most affected: the sharpest squeeze is in commercial eateries.

"The state of affairs is alarming. LPG simply isn't available," says a spokesperson of the a major restaurant body.

Most eateries run either on commercial LPG cylinders or pipeline-supplied fuel, and the lack of supply are now being felt across the country. "A lot of restaurants have closed - some in the capital, many in the southern region. People are adopting traditional burners and electronic appliances to keep food preparation going."

Localized Effects

In a western metro, local news say up to a fifth of hospitality businesses are already completely or partially closed as cylinder availability tighten. In the southern cities of tech and coastal hubs, some restaurants say their cylinder inventory have dwindled with little backup. "We can only make coffee and no other dishes - it is extremely difficult. Businesses are going to suffer," says a restaurant owner in Bengaluru.

A closed restaurant shutter in an Indian city
A food joint in a southern city which has shut down due to a lack of cooking gas.

Restaurant owners are rushing to adjust. "Food options are being cut, some are skipping midday meals and opening only for dinner," an industry representative says, adding that shutdowns are fluctuating as supplies come and go. "A number of eateries in Delhi were shut yesterday - some have resumed operations. It's a changing landscape."

Retailers observe a increase in sales of electric cookers, with some saying they are selling out quickly.

Official Position

Yet, the government states there is no shortage.

India has more than 30 crore household consumers and officials say supplies are being reallocated to households as geopolitical strain from the regional hostilities ripple through energy markets.

Approximately 60% of India's LPG is imported, and about 90% of those shipments pass through the key maritime route, the strategic bottleneck now significantly disrupted by the conflict.

The oil ministry says that it instructed refineries to boost LPG output for home needs, raising domestic production by about 25%. Business-grade fuel is being allocated for critical services such as healthcare and education, while distribution will be "fair and transparent".

"Some panic booking and hoarding has been caused by misinformation. The standard supply timeline for domestic LPG remains about under three days," says a senior official.

Spreading Anxiety

Now the anxiety is spreading beyond kitchens. On digital platforms, a widely shared video from Chennai shows a extended procession of two-wheelers outside a gas outlet. "The panic is real," the caption reads.

An oil tanker at sea representing imports
India brings in up to a vast majority of the oil it consumes, leaving it significantly susceptible to interruptions in worldwide shipments.

According to data from industry analysts, concerns about India's broader fuel supplies may be overstated.

India imports almost all of its petroleum. Around a significant portion of its petroleum shipments - about 2.5 to 2.7 million barrels a day - travel through the waterway, largely from regional suppliers.

Even if petroleum transit through the Strait of Hormuz are disrupted, the deficit could be partly offset by higher imports of discounted Russian crude, according to a industry commentator.

Based on vessel tracking and credible market sources, additional Russian crude imports could reach around a significant volume of barrels a day, narrowing 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 on the water in the Indian Ocean and, with only two major Asian economies as major buyers, those barrels remain a viable alternative," an analyst noted.

Kitchen Fuel: The Primary Concern

The primary concern is LPG, experts note.

India consumes roughly one million barrels a day, but produces only 40-45% domestically, importing the rest - 80–90% through Hormuz.

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 heavily reliant on imports.

In short: "Oil import vulnerability can be somewhat alleviated through varied suppliers. Fuel availability remains relatively comfortable. Cooking gas supply is the key factor to track in the coming weeks."

What may be worsening the anxiety on the ground is not just scarcity but patchy deliveries - and the common threat of panic buying.

An industry representative claims price gouging.

"Retailers are exploiting the situation - illegally trading canisters and selling them at a high cost. In one small town, I heard of cylinders being accumulated and sold at a premium."

For now, India's energy imports may be buffered by international market dynamics. But in restaurants across the country, the more pressing concern is simple: how to get the next cylinder.

Joshua Mann
Joshua Mann

A digital strategist with over 10 years of experience in helping businesses scale through data-driven marketing approaches.