‘The Situation is Dire’: War on Iran Constricts India's Cooking-Gas Supplies.
The ripple effects of a war being fought nearly a significant distance away are now reaching India's homes.
As military actions on Iran hinder energy deliveries through the Strait of Hormuz, stocks of liquefied petroleum gas (LPG) are dwindling across India, pushing restaurants to reduce offerings, reduce operating times and in some cases cease operations entirely.
Social media is filled with video clips showing crowds outside cooking-gas dealers across Indian urban and rural areas as worries over fuel supplies spread. Commercial LPG users appear the most affected: the most severe shortage is in restaurant kitchens.
"The situation is dire. LPG simply is unavailable," says a spokesperson of the a major restaurant body.
Most eateries run either on industrial fuel canisters or direct gas lines, and the lack of supply are now being felt across the country. "Many restaurants have shut down - some in Delhi, many in the south. People are switching to coal and wood and electric cookers to keep food preparation going."
City-Specific Fallout
In Mumbai, accounts say up to a significant portion of hotels and restaurants are already operating at reduced capacity as commercial LPG supplies dwindle. In the southern cities of Bengaluru and Chennai, some restaurants say their cylinder inventory have depleted with little backup. "Our menu is reduced to coffee and nothing else - it is extremely difficult. Operations will be impacted," says a business operator in Bengaluru.
Restaurant operators are seeking alternatives. "Menus are being curtailed, some are opening only for dinner and reducing hours," an industry representative says, adding that closures are fluctuating as supplies wax and wane. "A number of eateries in Delhi were shut yesterday - two have already reopened. It's a dynamic scenario."
Retailers observe a spike in sales of electronic cooking appliances, with some saying they are running out of them.
Government Stance
Yet, the officials states there is adequate supply.
India has more than 30 crore household consumers and spokespersons say stocks are being prioritized to households as conflict-related stress from the regional hostilities affect energy markets.
About six out of ten of India's LPG is brought in from overseas, and about the vast majority of those imports pass through the Strait of Hormuz, the strategic bottleneck now effectively closed by the hostilities.
The relevant department says that it instructed refineries to boost LPG output for home needs, enhancing domestic production by about 25%. Non-domestic supply is being prioritised for vital industries such as hospitals and educational institutions, while distribution will be "equitable and clear".
"A degree of anxious stocking and hoarding has been caused by misinformation. The normal delivery cycle for home fuel remains about 60 hours," says a senior official.
Growing Panic
Now the concern is moving beyond kitchens. On online networks, a widely shared video from Chennai shows a long, snaking queue of scooters outside a gas outlet. "The panic is real," the text reads.
According to analysis from industry analysts, concerns about India's broader fuel supplies may be overstated.
India imports 90% of its petroleum. Around 50% of its petroleum shipments - about 2.5 to 2.7 million barrels a day - travel through the strait, largely from Gulf countries.
Even if crude flows through the Strait of Hormuz are hindered, the gap could be partly offset by higher imports of discounted Russian crude, according to a refinery and oil markets analyst.
Based on maritime intelligence and industry information, increased Russian crude imports could reach around a significant volume of barrels a day, lessening India's effective deficit from exposure to the Strait of Hormuz to about a substantial volume of barrels a day.
"A large quantity of Russian oil barrels are currently floating on ships in the Indian Ocean and, with only key buyers as major buyers, those barrels remain a viable alternative," an analyst noted.
LPG: The Real Vulnerability
The primary concern is kitchen fuel, analysts say.
India consumes roughly 1 million barrels a day, but produces only a minority share domestically, importing the rest - most of it through the Strait.
Refineries can tweak operations to produce a bit more LPG, but even a 10-20% boost would only raise domestic supply to about under half of demand, leaving the country largely dependent on imports.
In short: "Crude supply risk can be moderately reduced through diversification. Refined product supply remains largely sufficient. Kitchen fuel stocks is the key factor to track in the coming weeks."
What may be intensifying the concern on the ground is not just tight supply but patchy deliveries - and the usual problem of panic buying.
An industry representative alleges opportunistic profiteering.
"Suppliers are taking advantage of the situation - illegally trading canisters and selling them at a inflated price. In one small town, I heard of cylinders being hoarded and auctioned off."
For now, India's petroleum stocks may be buffered by worldwide shipping. But in kitchens across the country, the more urgent issue is simple: how to get the next gas canister.
