‘A Critical Scenario’: War on Iran Constricts India's Cooking-Gas Stock.

People queue up to buy cooking gas cylinders for domestic use in an Indian city
People line up to buy LPG tanks for domestic use in Chennai.

The ripple effects of a war being fought nearly a significant distance away are now reaching India's homes.

As aerial attacks on Iran disrupt energy shipments through the vital shipping lane, supplies of liquefied petroleum gas (LPG) are dwindling across India, pushing restaurants to cut menus, close earlier and in some cases shut down altogether.

Social media is filled with video clips showing crowds outside fuel suppliers across Indian cities and towns as anxieties over fuel supplies spread. Restaurant kitchens appear the worst hit: the sharpest squeeze is in food service establishments.

"Conditions are critical. Kitchen fuel simply cannot be found," says a spokesperson of the National Restaurant Association of India.

Most eateries run either on industrial fuel canisters or direct gas lines, and the scarcities are now being felt across the country. "Numerous restaurants have shut down - some in northern India, many in the south. People are switching to solid fuels and electronic appliances to keep food preparation going."

City-Specific Fallout

In a financial hub, local news say up to a fifth of hospitality businesses are already operating at reduced capacity as business fuel stocks dry up. In the southern cities of tech and coastal hubs, some eateries say their gas stocks have depleted with scarce alternatives. "We can only make coffee and nothing else - it is nothing less than pathetic. Businesses are going to suffer," says a business operator in Bengaluru.

A closed restaurant shutter in an Indian city
A restaurant in a southern city which has shut down due to a lack of LPG.

Restaurant owners are seeking alternatives. "Food options are being cut, some are cutting lunch service and operating solely in the evening," an industry representative says, adding that shutdowns are fluctuating as supplies ebb and flow. "Three restaurants in Delhi were shut yesterday - a couple are back in business. It's a fluid situation."

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

Official Position

Yet, the officials insists there is no shortage.

India has more than 30 crore household consumers and spokespersons say supplies are being reallocated to households as conflict-related stress from the Middle East conflict impact energy markets.

Approximately six out of ten of India's LPG is imported, and about the vast majority of those imports pass through the key maritime route, the strategic bottleneck now significantly disrupted by the hostilities.

The oil ministry says that it instructed refineries to maximise LPG output for domestic use, lifting domestic production by about a significant margin. Non-domestic supply is being reserved for vital industries such as medical and academic centers, while distribution will be "just and open".

"Unnecessary hoarding and hoarding has been triggered by rumors. The regular refill period for household cylinders remains about under three days," says a senior official.

Spreading Anxiety

Now the concern is extending beyond kitchens. On digital platforms, a widely shared video from Chennai shows a long, snaking queue of two-wheelers outside a gas outlet. "Anxiety is palpable," the text reads.

An oil tanker at sea representing imports
India sources up to 90% of the crude it consumes, 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 the overwhelming majority of its crude oil. Around half of its crude oil imports - about 2.5-2.7 million barrels a day - travel through the passage, largely from Middle Eastern nations.

Even if crude flows through the Strait of Hormuz are hindered, the shortfall could be partly made up by higher imports of discounted Russian crude, according to a industry commentator.

Based on shipping data and credible market sources, incremental 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 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 key buyers as major buyers, those barrels remain a viable alternative," an analyst noted.

LPG: The Real Vulnerability

The primary concern is kitchen fuel, commentators observe.

India consumes roughly a million barrels a day, but produces only 40-45% domestically, importing the rest - most of it through the chokepoint.

Refineries can adjust processes 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: "Petroleum shortage concerns can be partially mitigated through diversification. Fuel availability remains largely sufficient. Kitchen fuel stocks is the key factor to monitor in the coming weeks."

What may be heightening the concern on the ground is not just scarcity but patchy deliveries - and the common threat of stockpiling.

An industry representative alleges exploitative practices.

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

For now, India's energy imports may be cushioned by global trade flows. But in homes across the country, the more pressing concern is simple: how to get the next refill.

Richard Riley
Richard Riley

A tech strategist with over a decade of experience in digital innovation and AI implementation across global enterprises.