‘An Alarming State of Affairs’: War on Iran Squeezes India's LPG Stock.

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

As US-Israeli strikes on Iran disrupt energy shipments through the vital shipping lane, stocks of liquefied petroleum gas (LPG) are tightening across India, pushing restaurants to shorten food lists, reduce operating times and in some cases cease operations entirely.

Social media is flooded by video clips showing crowds outside LPG distributors across Indian cities and towns as concerns over fuel supplies spread. Commercial LPG users appear the most affected: the most severe shortage is in food service establishments.

"Conditions are critical. Cooking gas simply is unavailable," says a official of the an industry group.

Most eateries run either on industrial fuel canisters or direct gas lines, and the scarcities are now being felt across the country. "A lot of restaurants have ceased operations - some in Delhi, many in the southern states. People are adopting solid fuels and electronic appliances to keep food preparation going."

Regional Impact

In a financial hub, local news say up to a significant portion of hotels and restaurants are already fully or partly shut as commercial LPG supplies dry up. In the southern cities of Bangalore and Madras, some restaurants say their cylinder inventory have dwindled with minimal reserves. "Coffee is the sole item we can prepare and no food items - it is truly dismal. Operations will be impacted," says a chain proprietor in Bengaluru.

Restaurant owners are seeking alternatives. "Food options are being cut, some are opening only for dinner and reducing hours," an industry representative says, adding that closures are changing as supplies come and go. "Several establishments in Delhi were shut yesterday - some have resumed operations. It's a dynamic scenario."

Retailers observe a surge in sales of electronic cooking appliances, with some saying they are running out of them.

Government Stance

Yet, the officials insists there is adequate supply.

India has more than 30 crore domestic LPG users and officials say supplies are being reallocated to households as geopolitical strain from the war in the Gulf ripple through energy markets.

Approximately a majority of India's LPG is imported, and about 90% of those shipments pass through the Strait of Hormuz, the vital passage now largely blocked by the conflict.

The petroleum ministry says that it directed refineries to increase LPG output for household consumption, lifting domestic production by about a significant margin. Non-domestic supply is being prioritised for critical services such as hospitals and educational institutions, while distribution will be "just and open".

"Some panic booking and stockpiling has been triggered by rumors. The normal delivery cycle for household cylinders remains about 60 hours," says a ministry representative.

Growing Panic

Now the worry is extending beyond kitchens. On digital platforms, a widely shared video from Chennai shows a long, snaking queue of motorbikes outside a petrol pump. "The panic is real," the text reads.

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

India imports 90% of its oil. Around half of its crude oil imports - about millions of barrels a day - travel through the strait, largely from regional suppliers.

Even if petroleum transit through the Strait of Hormuz are blocked, the gap could be partly made up by higher imports of Russian petroleum, according to a sector expert.

Based on vessel tracking and expert analysis, incremental 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.

"A large quantity of Russian oil barrels are currently on the water in the Indian Ocean and, with only key buyers as major buyers, those barrels remain a viable alternative," an analyst noted.

Cooking Gas: The Critical Weakness

The key weakness is cooking gas, experts note.

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

Refineries can adjust processes to produce a bit more LPG, but even a 10-20% boost would only lift domestic supply to about 47-50% of demand, leaving the country largely dependent on imports.

In short: "Crude supply risk can be partially mitigated through diversification. Refined product supply remains largely sufficient. Cooking gas supply is the real variable to track in the coming weeks."

What may be worsening the anxiety on the ground is not just scarcity but patchy deliveries - and the usual problem of stockpiling.

An industry representative claims price gouging.

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

For now, India's petroleum stocks may be cushioned by global trade flows. But in restaurants across the country, the more immediate question is simple: how to get the next gas canister.