🔗 Share this article ‘A Critical Scenario’: Conflict on Iran Tightens India's LPG Supplies. People line up to buy fuel canisters for household consumption in Chennai. The ripple effects of a military engagement being fought nearly 3,000km away are now impacting India's homes. As US-Israeli strikes on Iran disrupt energy shipments through the Strait of Hormuz, stocks of cooking gas are dwindling across India, compelling restaurants to shorten food lists, close earlier and in some cases cease operations entirely. Social media is awash with video clips showing queues outside cooking-gas dealers across Indian urban and rural areas as anxieties over fuel supplies spread. Commercial LPG users appear the hardest struck: the sharpest squeeze is in commercial eateries. "The state of affairs is alarming. Kitchen fuel simply cannot be found," says a representative of the National Restaurant Association of India. Most eateries run either on commercial LPG cylinders or pipeline-supplied fuel, and the lack of supply are now being felt across the country. "Numerous restaurants have ceased operations - some in the capital, many in the southern states. People are turning to solid fuels and electronic appliances to keep their operations going." City-Specific Fallout In a financial hub, accounts say up to a 20% of hotels and restaurants are already completely or partially closed as cylinder availability dry up. In the southern cities of Bangalore and Madras, some establishments say their fuel reserves have depleted with little backup. "We can only make coffee and no food items - it is truly dismal. Operations will be impacted," says a chain proprietor in Bengaluru. A eatery in Chennai which has ceased operations due to a lack of cooking gas. Restaurant owners are scrambling to adapt. "Food options are being cut, some are opening only for dinner and reducing hours," an industry representative says, adding that stoppages are changing as supplies ebb and flow. "Several establishments in Delhi were shut yesterday - some have resumed operations. It's a dynamic scenario." Retailers report a increase in sales of induction stoves, with some saying they are facing stockouts. Authority's View Yet, the authorities insists there is adequate supply. India has more than 30 crore domestic LPG users and spokespersons say supplies are being redirected to households as tensions from the Middle East conflict impact energy markets. Roughly a majority of India's LPG is sourced from abroad, and about nine out of ten of those consignments pass through the critical waterway, the vital passage now significantly disrupted by the conflict. The petroleum ministry says that it ordered refineries to boost LPG output for household consumption, enhancing domestic production by about a quarter. Business-grade fuel is being prioritised for essential sectors such as healthcare and education, while distribution will be "equitable and clear". "Some panic booking and accumulation has been caused by rumors. The normal delivery cycle for household cylinders remains about under three days," says a senior official. Growing Panic Now the concern is extending beyond kitchens. On digital platforms, a widely shared video from Chennai shows a long, snaking queue of motorbikes outside a fuel station. "The panic is real," the description reads. India sources up to most of the petroleum it uses, leaving it highly exposed to problems in global supplies. According to analysis from energy specialists, concerns about India's broader fuel supplies may be premature. India imports 90% of its oil. Around 50% of its petroleum shipments - about 2.5-2.7 million barrels a day - travel through the waterway, largely from Gulf countries. Even if oil shipments through the Strait of Hormuz are blocked, the shortfall could be partly offset by higher imports of competitively priced oil from Russia, according to a sector expert. Based on shipping data and expert analysis, additional Russian crude imports could reach around 1-1.2 million barrels a day, narrowing India's effective gap from exposure to the Strait of Hormuz to about 1.6 million barrels a day. "Around 25-30 million Russian oil barrels are currently in transit at sea in the Indian Ocean and, with only key buyers as major buyers, those barrels remain a ready fallback," an analyst noted. Kitchen Fuel: The Primary Concern The key weakness is cooking gas, commentators observe. India consumes roughly one million barrels a day, but produces only less than half domestically, importing the rest - most of it through the Strait. Refineries can tweak operations to extract a bit more LPG, but even a moderate increase would only lift domestic supply to about 47-50% of demand, leaving the country significantly leaning on imports. In short: "Crude supply risk can be somewhat alleviated through varied suppliers. Processed petroleum stocks remains largely sufficient. LPG availability is the key factor to monitor in the coming weeks." What may be heightening the concern on the ground is not just tight supply but patchy deliveries - and the usual problem of panic buying. An industry representative alleges price gouging. "Distributors are exploiting the situation - illegally trading canisters and selling them at a inflated price. In one small town, I heard of cylinders being accumulated and sold to the highest bidder." For now, India's energy imports may be buffered by worldwide shipping. But in restaurants across the country, the more immediate question is simple: how to get the next gas canister.
People line up to buy fuel canisters for household consumption in Chennai. The ripple effects of a military engagement being fought nearly 3,000km away are now impacting India's homes. As US-Israeli strikes on Iran disrupt energy shipments through the Strait of Hormuz, stocks of cooking gas are dwindling across India, compelling restaurants to shorten food lists, close earlier and in some cases cease operations entirely. Social media is awash with video clips showing queues outside cooking-gas dealers across Indian urban and rural areas as anxieties over fuel supplies spread. Commercial LPG users appear the hardest struck: the sharpest squeeze is in commercial eateries. "The state of affairs is alarming. Kitchen fuel simply cannot be found," says a representative of the National Restaurant Association of India. Most eateries run either on commercial LPG cylinders or pipeline-supplied fuel, and the lack of supply are now being felt across the country. "Numerous restaurants have ceased operations - some in the capital, many in the southern states. People are turning to solid fuels and electronic appliances to keep their operations going." City-Specific Fallout In a financial hub, accounts say up to a 20% of hotels and restaurants are already completely or partially closed as cylinder availability dry up. In the southern cities of Bangalore and Madras, some establishments say their fuel reserves have depleted with little backup. "We can only make coffee and no food items - it is truly dismal. Operations will be impacted," says a chain proprietor in Bengaluru. A eatery in Chennai which has ceased operations due to a lack of cooking gas. Restaurant owners are scrambling to adapt. "Food options are being cut, some are opening only for dinner and reducing hours," an industry representative says, adding that stoppages are changing as supplies ebb and flow. "Several establishments in Delhi were shut yesterday - some have resumed operations. It's a dynamic scenario." Retailers report a increase in sales of induction stoves, with some saying they are facing stockouts. Authority's View Yet, the authorities insists there is adequate supply. India has more than 30 crore domestic LPG users and spokespersons say supplies are being redirected to households as tensions from the Middle East conflict impact energy markets. Roughly a majority of India's LPG is sourced from abroad, and about nine out of ten of those consignments pass through the critical waterway, the vital passage now significantly disrupted by the conflict. The petroleum ministry says that it ordered refineries to boost LPG output for household consumption, enhancing domestic production by about a quarter. Business-grade fuel is being prioritised for essential sectors such as healthcare and education, while distribution will be "equitable and clear". "Some panic booking and accumulation has been caused by rumors. The normal delivery cycle for household cylinders remains about under three days," says a senior official. Growing Panic Now the concern is extending beyond kitchens. On digital platforms, a widely shared video from Chennai shows a long, snaking queue of motorbikes outside a fuel station. "The panic is real," the description reads. India sources up to most of the petroleum it uses, leaving it highly exposed to problems in global supplies. According to analysis from energy specialists, concerns about India's broader fuel supplies may be premature. India imports 90% of its oil. Around 50% of its petroleum shipments - about 2.5-2.7 million barrels a day - travel through the waterway, largely from Gulf countries. Even if oil shipments through the Strait of Hormuz are blocked, the shortfall could be partly offset by higher imports of competitively priced oil from Russia, according to a sector expert. Based on shipping data and expert analysis, additional Russian crude imports could reach around 1-1.2 million barrels a day, narrowing India's effective gap from exposure to the Strait of Hormuz to about 1.6 million barrels a day. "Around 25-30 million Russian oil barrels are currently in transit at sea in the Indian Ocean and, with only key buyers as major buyers, those barrels remain a ready fallback," an analyst noted. Kitchen Fuel: The Primary Concern The key weakness is cooking gas, commentators observe. India consumes roughly one million barrels a day, but produces only less than half domestically, importing the rest - most of it through the Strait. Refineries can tweak operations to extract a bit more LPG, but even a moderate increase would only lift domestic supply to about 47-50% of demand, leaving the country significantly leaning on imports. In short: "Crude supply risk can be somewhat alleviated through varied suppliers. Processed petroleum stocks remains largely sufficient. LPG availability is the key factor to monitor in the coming weeks." What may be heightening the concern on the ground is not just tight supply but patchy deliveries - and the usual problem of panic buying. An industry representative alleges price gouging. "Distributors are exploiting the situation - illegally trading canisters and selling them at a inflated price. In one small town, I heard of cylinders being accumulated and sold to the highest bidder." For now, India's energy imports may be buffered by worldwide shipping. But in restaurants across the country, the more immediate question is simple: how to get the next gas canister.