🔗 Share this article ‘An Alarming State of Affairs’: Hostilities on Iran Constricts India's LPG Supplies. People queue up to buy LPG tanks for household consumption in a major Indian city. The repercussions of a war being fought nearly a significant distance away are now reaching India's households. As military actions on Iran hinder energy deliveries through the key maritime chokepoint, supplies of cooking gas are tightening across India, compelling restaurants to reduce offerings, shorten hours and in some cases shut down altogether. Social media is awash with video clips showing lines outside fuel suppliers across Indian metros and localities as anxieties over fuel supplies grow. Businesses appear the worst hit: the sharpest squeeze is in food service establishments. "The situation is dire. Kitchen fuel simply cannot be found," says a official 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 noticed across the country. "A lot of restaurants have shut down - some in the capital, many in the southern region. People are switching to traditional burners and induction stoves to keep kitchens going." City-Specific Fallout In a financial hub, local news say up to a 20% of hospitality businesses are already fully or partly shut as commercial LPG supplies dry up. In the southern cities of tech and coastal hubs, some establishments say their gas stocks have dwindled with scarce alternatives. "Coffee is the sole item we can prepare and nothing else - it is nothing less than pathetic. Commerce will take a hit," says a chain proprietor in Bengaluru. A food joint in a southern city which has ceased operations due to a shortage of LPG. Restaurant operators are seeking alternatives. "Menus are being curtailed, some are opening only for dinner and operating solely in the evening," an industry representative says, adding that shutdowns are fluctuating as supplies come and go. "Several establishments in Delhi were shut yesterday - two have already reopened. It's a fluid situation." Retailers report a surge in sales of induction stoves, with some saying they are running out of them. Official Position Yet, the officials insists there is no shortage. India has more than a vast number of household consumers and spokespersons say stocks are being redirected to households as tensions from the Middle East conflict affect energy markets. Roughly a majority of India's LPG is sourced from abroad, and about 90% of those consignments pass through the key maritime route, the strategic bottleneck now significantly disrupted by the hostilities. The relevant department says that it ordered refineries to increase LPG output for household consumption, raising domestic production by about a quarter. Business-grade fuel is being allocated for vital industries such as medical and academic centers, while distribution will be "just and open". "A degree of anxious stocking and accumulation has been triggered by rumors. The standard supply timeline for domestic LPG remains about under three days," says a government spokesperson. Growing Panic Now the concern is spreading beyond kitchens. On social media, a widely shared video from Chennai shows a extended procession of two-wheelers outside a fuel station. "Anxiety is palpable," the caption reads. India imports up to most of the crude it consumes, leaving it particularly vulnerable to disruptions in international markets. According to data from market experts, concerns about India's broader energy security may be premature. India imports almost all of its oil. Around half of its crude oil imports - about 2.5 to 2.7 million barrels a day - travel through the waterway, largely from Middle Eastern nations. Even if crude flows through the Strait of Hormuz are hindered, the shortfall could be partly offset by higher imports of competitively priced oil from Russia, according to a sector expert. Based on maritime intelligence and industry information, additional 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. "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. Kitchen Fuel: The Primary Concern The real vulnerability is LPG, experts note. India consumes roughly a million barrels a day, but produces only less than half domestically, importing the rest - the vast majority through the chokepoint. Refineries can tweak operations to produce a bit more LPG, but even a limited rise would only lift domestic supply to about under half of demand, leaving the country largely dependent on imports. In short: "Petroleum shortage concerns can be somewhat alleviated through diversification. Processed petroleum stocks remains fairly adequate. LPG availability is the real variable to watch in the coming weeks." What may be intensifying the anxiety on the ground is not just tight supply but patchy deliveries - and the usual problem of stockpiling. An industry representative alleges price gouging. "Retailers 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 accumulated and sold at a premium." For now, India's energy imports may be protected by global trade flows. But in restaurants across the country, the more pressing concern is simple: how to get the next cylinder.
People queue up to buy LPG tanks for household consumption in a major Indian city. The repercussions of a war being fought nearly a significant distance away are now reaching India's households. As military actions on Iran hinder energy deliveries through the key maritime chokepoint, supplies of cooking gas are tightening across India, compelling restaurants to reduce offerings, shorten hours and in some cases shut down altogether. Social media is awash with video clips showing lines outside fuel suppliers across Indian metros and localities as anxieties over fuel supplies grow. Businesses appear the worst hit: the sharpest squeeze is in food service establishments. "The situation is dire. Kitchen fuel simply cannot be found," says a official 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 noticed across the country. "A lot of restaurants have shut down - some in the capital, many in the southern region. People are switching to traditional burners and induction stoves to keep kitchens going." City-Specific Fallout In a financial hub, local news say up to a 20% of hospitality businesses are already fully or partly shut as commercial LPG supplies dry up. In the southern cities of tech and coastal hubs, some establishments say their gas stocks have dwindled with scarce alternatives. "Coffee is the sole item we can prepare and nothing else - it is nothing less than pathetic. Commerce will take a hit," says a chain proprietor in Bengaluru. A food joint in a southern city which has ceased operations due to a shortage of LPG. Restaurant operators are seeking alternatives. "Menus are being curtailed, some are opening only for dinner and operating solely in the evening," an industry representative says, adding that shutdowns are fluctuating as supplies come and go. "Several establishments in Delhi were shut yesterday - two have already reopened. It's a fluid situation." Retailers report a surge in sales of induction stoves, with some saying they are running out of them. Official Position Yet, the officials insists there is no shortage. India has more than a vast number of household consumers and spokespersons say stocks are being redirected to households as tensions from the Middle East conflict affect energy markets. Roughly a majority of India's LPG is sourced from abroad, and about 90% of those consignments pass through the key maritime route, the strategic bottleneck now significantly disrupted by the hostilities. The relevant department says that it ordered refineries to increase LPG output for household consumption, raising domestic production by about a quarter. Business-grade fuel is being allocated for vital industries such as medical and academic centers, while distribution will be "just and open". "A degree of anxious stocking and accumulation has been triggered by rumors. The standard supply timeline for domestic LPG remains about under three days," says a government spokesperson. Growing Panic Now the concern is spreading beyond kitchens. On social media, a widely shared video from Chennai shows a extended procession of two-wheelers outside a fuel station. "Anxiety is palpable," the caption reads. India imports up to most of the crude it consumes, leaving it particularly vulnerable to disruptions in international markets. According to data from market experts, concerns about India's broader energy security may be premature. India imports almost all of its oil. Around half of its crude oil imports - about 2.5 to 2.7 million barrels a day - travel through the waterway, largely from Middle Eastern nations. Even if crude flows through the Strait of Hormuz are hindered, the shortfall could be partly offset by higher imports of competitively priced oil from Russia, according to a sector expert. Based on maritime intelligence and industry information, additional 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. "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. Kitchen Fuel: The Primary Concern The real vulnerability is LPG, experts note. India consumes roughly a million barrels a day, but produces only less than half domestically, importing the rest - the vast majority through the chokepoint. Refineries can tweak operations to produce a bit more LPG, but even a limited rise would only lift domestic supply to about under half of demand, leaving the country largely dependent on imports. In short: "Petroleum shortage concerns can be somewhat alleviated through diversification. Processed petroleum stocks remains fairly adequate. LPG availability is the real variable to watch in the coming weeks." What may be intensifying the anxiety on the ground is not just tight supply but patchy deliveries - and the usual problem of stockpiling. An industry representative alleges price gouging. "Retailers 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 accumulated and sold at a premium." For now, India's energy imports may be protected by global trade flows. But in restaurants across the country, the more pressing concern is simple: how to get the next cylinder.