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

The ripple effects of a war being fought nearly 1,864 miles away are now impacting India's homes.

As aerial attacks on Iran hinder energy deliveries through the vital shipping lane, supplies of liquefied petroleum gas (LPG) are shrinking across India, forcing restaurants to cut menus, shorten hours and in some cases close completely.

Social media is awash with video clips showing crowds outside fuel suppliers across Indian urban and rural areas as anxieties over fuel supplies grow. Businesses appear the hardest struck: the biggest crunch is in commercial eateries.

"Conditions are critical. LPG simply is unavailable," says a spokesperson of the National Restaurant Association of India.

Most food outlets run either on industrial fuel canisters or piped gas, and the shortages are now being experienced across the country. "A lot of restaurants have ceased operations - some in Delhi, many in the southern region. People are switching to solid fuels and electronic appliances to keep kitchens going."

Regional Impact

In a financial hub, media reports say up to a significant portion of hotels and restaurants are already completely or partially closed as business fuel stocks tighten. In the southern cities of tech and coastal hubs, some restaurants say their fuel reserves have shrunk with minimal reserves. "Our menu is reduced to coffee and nothing else - it is truly dismal. Operations will be impacted," says a restaurant owner in Bengaluru.

Restaurant managers are seeking alternatives. "Offering lists are shrinking, some are skipping midday meals and opening only for dinner," an industry representative says, adding that closures are changing as supplies come and go. "A number of eateries in Delhi were shut yesterday - some have resumed operations. It's a fluid situation."

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

Authority's View

Yet, the authorities maintains there is adequate supply.

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

Approximately six out of ten of India's LPG is brought in from overseas, and about the vast majority of those consignments pass through the key maritime route, the strategic bottleneck now significantly disrupted by the war.

The relevant department says that it directed refineries to maximise LPG output for domestic use, enhancing domestic production by about 25%. Business-grade fuel is being allocated for vital industries such as healthcare and education, while distribution will be "equitable and clear".

"A degree of anxious stocking and hoarding has been caused by misinformation. The standard supply timeline for domestic LPG remains about two-and-a-half days," says a senior official.

Growing Panic

Now the anxiety is spreading beyond kitchens. On digital platforms, a widely shared video from Chennai shows a extended procession of two-wheelers outside a fuel station. "Anxiety is palpable," the text reads.

According to data from market experts, concerns about India's broader petroleum stocks may be exaggerated.

India imports the overwhelming majority of its petroleum. Around half of its oil purchases - about millions of barrels a day - travel through the waterway, largely from regional suppliers.

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

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 shortfall from exposure to the Strait of Hormuz to about a substantial volume of barrels a day.

"Around 25-30 million Russian oil barrels are currently on the water in the Indian Ocean and, with only two major Asian economies as major buyers, those barrels remain a viable alternative," an analyst noted.

Kitchen Fuel: The Primary Concern

The real vulnerability is cooking gas, experts note.

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

Refineries can modify output to produce a bit more LPG, but even a limited rise would only increase domestic supply to about around half of demand, leaving the country significantly leaning on imports.

In short: "Petroleum shortage concerns can be moderately reduced through alternative sourcing. Refined product supply remains relatively comfortable. LPG availability is the critical issue to watch in the coming weeks."

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

An industry representative states exploitative practices.

"Retailers are taking advantage of the situation - selling fuel on the black market and selling them at a inflated price. In one small town, I heard of cylinders being hoarded and sold at a premium."

For now, India's oil supplies may be buffered by international market dynamics. But in kitchens across the country, the more pressing concern is simple: how to get the next refill.