‘The Situation is Dire’: War on Iran Squeezes India's LPG Supplies.

The shockwaves of a conflict being fought nearly 1,864 miles away are now reaching India's households.

As aerial attacks on Iran impede energy transports through the Strait of Hormuz, availability of kitchen fuel are dwindling across India, compelling restaurants to cut menus, shorten hours and in some cases cease operations entirely.

Social media is filled with video clips showing lines outside cooking-gas dealers across Indian metros and localities as concerns over fuel supplies escalate. Businesses appear the hardest struck: the biggest crunch is in commercial eateries.

"Conditions are critical. LPG simply cannot be found," says a representative of the a major restaurant body.

Most food outlets run either on commercial LPG cylinders or piped gas, and the shortages are now being noticed across the country. "Many restaurants have closed - some in the capital, many in the southern states. People are switching to coal and wood and electronic appliances to keep kitchens going."

Localized Effects

In a western metro, local news say up to a significant portion of eateries are already completely or partially closed as business fuel stocks dry up. In the southern cities of Bangalore and Madras, some eateries say their cylinder inventory have dwindled with little backup. "Our menu is reduced to coffee and nothing else - it is truly dismal. Businesses are going to suffer," says a business operator in Bengaluru.

Restaurant owners are rushing to adjust. "Food options are being cut, some are cutting lunch service and operating solely in the evening," an industry representative says, adding that closures are changing as supplies wax and wane. "Several establishments in Delhi were shut yesterday - some have resumed operations. It's a dynamic scenario."

Retailers note a surge in sales of electric cookers, with some saying they are facing stockouts.

Government Stance

Yet, the government insists there is adequate supply.

India has more than 300 million home fuel subscribers and officials say stocks are being redirected to households as geopolitical strain from the war in the Gulf impact energy markets.

Roughly a majority of India's LPG is sourced from abroad, and about 90% of those shipments pass through the critical waterway, the strategic bottleneck now significantly disrupted by the conflict.

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

"A degree of anxious stocking and hoarding has been sparked by false reports. The regular refill period for home fuel remains about two-and-a-half days," says a senior official.

Spreading Anxiety

Now the anxiety is spreading beyond kitchens. On digital platforms, a widely shared video from Chennai shows a long, snaking queue of motorbikes outside a fuel station. "Concern is genuine," the description reads.

According to reports from energy specialists, concerns about India's broader energy security may be overstated.

India imports the overwhelming majority of its crude oil. Around half of its petroleum shipments - about millions of barrels a day - travel through the waterway, largely from Middle Eastern nations.

Even if oil shipments through the Strait of Hormuz are hindered, the gap could be partly compensated for by higher imports of competitively priced oil from Russia, according to a sector expert.

Based on shipping data and expert analysis, increased Russian crude imports could reach around a significant volume of barrels a day, reducing 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 floating on ships 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 primary concern is cooking gas, analysts say.

India consumes roughly one million barrels a day, but produces only less than half domestically, importing the rest - most of it through Hormuz.

Refineries can adjust processes to squeeze out a bit more LPG, but even a 10-20% boost would only increase domestic supply to about 47-50% of demand, leaving the country heavily reliant on imports.

In short: "Oil import vulnerability can be moderately reduced through diversification. Processed petroleum stocks remains largely sufficient. Cooking gas supply is the real variable to monitor in the coming weeks."

What may be intensifying the anxiety on the ground is not just limited availability but erratic supply chains - and the common threat of hoarding.

An industry representative alleges price gouging.

"Retailers 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 to the highest bidder."

For now, India's oil supplies may be cushioned by global trade flows. But in restaurants across the country, the more pressing concern is simple: how to get the next cylinder.