‘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 being felt in India's homes.

As aerial attacks on Iran impede energy deliveries through the vital shipping lane, stocks of liquefied petroleum gas (LPG) are tightening across India, compelling restaurants to shorten food lists, shorten hours and in some cases cease operations entirely.

Social media is awash with video clips showing crowds outside fuel suppliers across Indian cities and towns as concerns over fuel supplies spread. Commercial LPG users appear the worst hit: the biggest crunch is in commercial eateries.

"Conditions are critical. LPG simply isn't available," says a spokesperson of the National Restaurant Association of India.

Most eateries run either on commercial LPG cylinders or pipeline-supplied fuel, and the shortages are now being noticed across the country. "Numerous restaurants have closed - some in the capital, many in the southern states. People are turning to coal and wood and electric cookers to keep food preparation going."

City-Specific Fallout

In a western metro, media reports say up to a significant portion of eateries are already operating at reduced capacity as commercial LPG supplies tighten. In the southern cities of tech and coastal hubs, some establishments say their gas stocks have dwindled with little backup. "Coffee is the sole item we can prepare and no other dishes - it is nothing less than pathetic. Commerce will take a hit," says a restaurant owner in Bengaluru.

Restaurant managers are seeking alternatives. "Food options are being cut, some are opening only for dinner and reducing hours," an industry representative says, adding that stoppages are varying as supplies ebb and flow. "Several establishments in Delhi were shut yesterday - two have already reopened. It's a changing landscape."

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

Government Stance

Yet, the government maintains there is no shortage.

India has more than 300 million household consumers and officials say supplies are being reallocated to households as conflict-related stress from the war in the Gulf ripple through energy markets.

About 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 strategic bottleneck now effectively closed by the conflict.

The petroleum ministry says that it ordered refineries to boost LPG output for home needs, enhancing domestic production by about 25%. Non-domestic supply is being prioritised for essential sectors such as hospitals and educational institutions, while distribution will be "fair and transparent".

"A degree of anxious stocking and hoarding has been triggered by misinformation. The regular refill period for household cylinders remains about 60 hours," says a government spokesperson.

Growing Panic

Now the concern is moving beyond kitchens. On digital platforms, a widely shared video from Chennai shows a lengthy, winding line of scooters outside a gas outlet. "The panic is real," the text reads.

According to analysis from industry analysts, concerns about India's broader energy security may be overstated.

India imports almost all of its crude oil. Around 50% of its crude oil imports - about 2.5 to 2.7 million barrels a day - travel through the waterway, largely from regional suppliers.

Even if petroleum transit through the Strait of Hormuz are disrupted, the deficit could be partly compensated for by higher imports of Russian petroleum, according to a sector expert.

Based on maritime intelligence and industry information, incremental Russian crude imports could reach around a significant volume of barrels a day, reducing India's effective deficit from exposure to the Strait of Hormuz to about 1.6 million barrels a day.

"A large quantity of Russian oil barrels are currently in transit at sea in the Indian Ocean and, with only India and China as major buyers, those barrels remain a viable alternative," an analyst noted.

Cooking Gas: The Critical Weakness

The key weakness is cooking gas, commentators observe.

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

Refineries can tweak operations to extract a bit more LPG, but even a 10-20% boost would only increase domestic supply to about around half of demand, leaving the country heavily reliant on imports.

In short: "Oil import vulnerability can be somewhat alleviated through varied suppliers. Fuel availability remains fairly adequate. Cooking gas supply is the key factor to watch in the coming weeks."

What may be intensifying the panic on the ground is not just limited availability but erratic supply chains - and the usual problem of panic buying.

An industry representative states opportunistic profiteering.

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

For now, India's energy imports may be buffered by global trade flows. But in homes across the country, the more immediate question is simple: how to get the next gas canister.