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

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

As US-Israeli strikes on Iran disrupt energy transports through the key maritime chokepoint, supplies of cooking gas are dwindling across India, compelling restaurants to shorten food lists, close earlier and in some cases close completely.

Social media is flooded by video clips showing lines outside cooking-gas dealers across Indian urban and rural areas as worries over fuel supplies grow. Commercial LPG users appear the most affected: the sharpest squeeze is in commercial eateries.

"The situation is dire. LPG simply isn't available," says a official of the a major restaurant body.

Most food outlets run either on industrial fuel canisters or direct gas lines, and the lack of supply are now being noticed across the country. "A lot of restaurants have ceased operations - some in Delhi, many in the south. People are switching to solid fuels and electric cookers to keep their operations going."

Regional Impact

In a western metro, local news say up to a significant portion 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 minimal reserves. "We can only make coffee and nothing else - it is nothing less than pathetic. Operations will be impacted," says a chain proprietor in Bengaluru.

Restaurant operators are scrambling to adapt. "Menus are being curtailed, some are cutting lunch service and operating solely in the evening," an industry representative says, adding that shutdowns are changing as supplies come and go. "Several establishments in Delhi were shut yesterday - some have resumed operations. It's a changing landscape."

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

Authority's View

Yet, the authorities maintains there is adequate supply.

India has more than 30 crore domestic LPG users and officials say supplies are being redirected to households as conflict-related stress from the Middle East conflict impact energy markets.

About a majority of India's LPG is brought in from overseas, and about nine out of ten of those imports pass through the Strait of Hormuz, the narrow Gulf chokepoint now significantly disrupted by the conflict.

The oil ministry says that it instructed refineries to increase LPG output for home needs, enhancing domestic production by about 25%. Business-grade fuel is being reserved for vital industries such as hospitals and educational institutions, while distribution will be "equitable and clear".

"Some panic booking and hoarding has been sparked by rumors. The regular refill period for home fuel remains about under three days," says a government spokesperson.

Growing Panic

Now the worry is spreading beyond kitchens. On social media, a widely shared video from Chennai shows a long, snaking queue of motorbikes outside a fuel station. "Anxiety is palpable," the caption reads.

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

India imports almost all of its oil. Around a significant portion of its crude oil imports - about millions of barrels a day - travel through the strait, largely from regional suppliers.

Even if crude flows through the Strait of Hormuz are blocked, the deficit could be partly made up by higher imports of Russian petroleum, according to a refinery and oil markets analyst.

Based on shipping data and industry information, 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.

"Around 25-30 million Russian oil barrels are currently on the water in the Indian Ocean and, with only India and China as major buyers, those barrels remain a ready fallback," an analyst noted.

LPG: The Real Vulnerability

The key weakness is kitchen fuel, experts note.

India consumes roughly 1 million barrels a day, but produces only a minority share domestically, importing the rest - most of it through the chokepoint.

Refineries can adjust processes to produce a bit more LPG, but even a limited rise would only raise domestic supply to about around half of demand, leaving the country heavily reliant on imports.

In short: "Petroleum shortage concerns can be partially mitigated through varied suppliers. Refined product supply remains fairly adequate. Kitchen fuel stocks is the key factor to track in the coming weeks."

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

An industry representative claims price gouging.

"Suppliers are misusing the situation - illegally trading canisters and selling them at a premium. In one small town, I heard of cylinders being hoarded and auctioned off."

For now, India's energy imports may be protected by worldwide shipping. But in homes across the country, the more immediate question is simple: how to get the next cylinder.