🔗 Share this article ‘The Situation is Dire’: Conflict on Iran Tightens India's LPG Stock. People wait in lines to buy fuel canisters for household consumption in an urban center. The ripple effects of a military engagement being fought nearly 1,864 miles away are now reaching India's homes. As aerial attacks on Iran hinder energy transports through the vital shipping lane, supplies of liquefied petroleum gas (LPG) are dwindling across India, compelling restaurants to shorten food lists, close earlier and in some cases cease operations entirely. Social media is flooded by video clips showing crowds outside LPG distributors across Indian cities and towns as anxieties over fuel supplies escalate. Restaurant kitchens appear the hardest struck: the most severe shortage is in commercial eateries. "The state of affairs is alarming. Cooking gas simply isn't available," says a representative of the an industry group. Most food outlets run either on industrial fuel canisters or pipeline-supplied fuel, and the scarcities are now being noticed across the country. "Numerous restaurants have closed - some in northern India, many in the south. People are adopting coal and wood and electronic appliances to keep food preparation going." Localized Effects In a financial hub, accounts say up to a 20% of hospitality businesses are already fully or partly shut as commercial LPG supplies tighten. In the southern cities of Bengaluru and Chennai, some restaurants say their fuel reserves have shrunk with little backup. "Our menu is reduced to coffee and no other dishes - it is nothing less than pathetic. Businesses are going to suffer," says a chain proprietor in Bengaluru. A eatery in a southern city which has closed its doors due to a shortage of kitchen fuel. Restaurant operators are scrambling to adapt. "Offering lists are shrinking, some are skipping midday meals and opening only for dinner," an industry representative says, adding that shutdowns are fluctuating as supplies wax and wane. "Several establishments in Delhi were shut yesterday - two have already reopened. It's a changing landscape." Retailers report a increase in sales of electronic cooking appliances, with some saying they are facing stockouts. Authority's View Yet, the government insists there is sufficient stock. India has more than a vast number of domestic LPG users and spokespersons say cylinders are being redirected to households as conflict-related stress from the war in the Gulf impact energy markets. About six out of ten of India's LPG is brought in from overseas, and about 90% of those imports pass through the key maritime route, the vital passage now largely blocked by the war. The oil ministry says that it ordered refineries to boost LPG output for domestic use, raising domestic production by about a quarter. Business-grade fuel is being prioritised for essential sectors such as healthcare and education, while distribution will be "fair and transparent". "Unnecessary hoarding and accumulation has been sparked by false reports. The regular refill period for household cylinders remains about 60 hours," says a ministry representative. Growing Panic Now the worry is extending beyond kitchens. On digital platforms, a widely shared video from Chennai shows a lengthy, winding line of scooters outside a petrol pump. "The panic is real," the caption reads. India brings in up to 90% of the crude it uses, leaving it particularly vulnerable to disruptions in worldwide shipments. According to data from market experts, concerns about India's broader petroleum stocks may be overstated. India imports 90% 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 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 industry information, increased Russian crude imports could reach around 1-1.2 million barrels a day, lessening India's effective gap from exposure to the Strait of Hormuz to about 1.6 million barrels a day. "A large quantity of 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 viable alternative," an analyst noted. Cooking Gas: The Critical Weakness The primary concern is kitchen fuel, analysts say. India consumes roughly one million barrels a day, but produces only 40-45% domestically, importing the rest - most of it through Hormuz. Refineries can modify output to produce a bit more LPG, but even a 10-20% boost would only increase domestic supply to about under half of demand, leaving the country largely dependent on imports. In short: "Crude supply risk can be moderately reduced through alternative sourcing. Refined product supply remains largely sufficient. Kitchen fuel stocks is the real variable to monitor 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 opportunistic profiteering. "Suppliers are taking advantage of the situation - illegally trading canisters and selling them at a inflated price. In one small town, I heard of cylinders being hoarded and sold to the highest bidder." For now, India's petroleum stocks may be cushioned by global trade flows. But in homes across the country, the more urgent issue is simple: how to get the next gas canister.
People wait in lines to buy fuel canisters for household consumption in an urban center. The ripple effects of a military engagement being fought nearly 1,864 miles away are now reaching India's homes. As aerial attacks on Iran hinder energy transports through the vital shipping lane, supplies of liquefied petroleum gas (LPG) are dwindling across India, compelling restaurants to shorten food lists, close earlier and in some cases cease operations entirely. Social media is flooded by video clips showing crowds outside LPG distributors across Indian cities and towns as anxieties over fuel supplies escalate. Restaurant kitchens appear the hardest struck: the most severe shortage is in commercial eateries. "The state of affairs is alarming. Cooking gas simply isn't available," says a representative of the an industry group. Most food outlets run either on industrial fuel canisters or pipeline-supplied fuel, and the scarcities are now being noticed across the country. "Numerous restaurants have closed - some in northern India, many in the south. People are adopting coal and wood and electronic appliances to keep food preparation going." Localized Effects In a financial hub, accounts say up to a 20% of hospitality businesses are already fully or partly shut as commercial LPG supplies tighten. In the southern cities of Bengaluru and Chennai, some restaurants say their fuel reserves have shrunk with little backup. "Our menu is reduced to coffee and no other dishes - it is nothing less than pathetic. Businesses are going to suffer," says a chain proprietor in Bengaluru. A eatery in a southern city which has closed its doors due to a shortage of kitchen fuel. Restaurant operators are scrambling to adapt. "Offering lists are shrinking, some are skipping midday meals and opening only for dinner," an industry representative says, adding that shutdowns are fluctuating as supplies wax and wane. "Several establishments in Delhi were shut yesterday - two have already reopened. It's a changing landscape." Retailers report a increase in sales of electronic cooking appliances, with some saying they are facing stockouts. Authority's View Yet, the government insists there is sufficient stock. India has more than a vast number of domestic LPG users and spokespersons say cylinders are being redirected to households as conflict-related stress from the war in the Gulf impact energy markets. About six out of ten of India's LPG is brought in from overseas, and about 90% of those imports pass through the key maritime route, the vital passage now largely blocked by the war. The oil ministry says that it ordered refineries to boost LPG output for domestic use, raising domestic production by about a quarter. Business-grade fuel is being prioritised for essential sectors such as healthcare and education, while distribution will be "fair and transparent". "Unnecessary hoarding and accumulation has been sparked by false reports. The regular refill period for household cylinders remains about 60 hours," says a ministry representative. Growing Panic Now the worry is extending beyond kitchens. On digital platforms, a widely shared video from Chennai shows a lengthy, winding line of scooters outside a petrol pump. "The panic is real," the caption reads. India brings in up to 90% of the crude it uses, leaving it particularly vulnerable to disruptions in worldwide shipments. According to data from market experts, concerns about India's broader petroleum stocks may be overstated. India imports 90% 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 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 industry information, increased Russian crude imports could reach around 1-1.2 million barrels a day, lessening India's effective gap from exposure to the Strait of Hormuz to about 1.6 million barrels a day. "A large quantity of 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 viable alternative," an analyst noted. Cooking Gas: The Critical Weakness The primary concern is kitchen fuel, analysts say. India consumes roughly one million barrels a day, but produces only 40-45% domestically, importing the rest - most of it through Hormuz. Refineries can modify output to produce a bit more LPG, but even a 10-20% boost would only increase domestic supply to about under half of demand, leaving the country largely dependent on imports. In short: "Crude supply risk can be moderately reduced through alternative sourcing. Refined product supply remains largely sufficient. Kitchen fuel stocks is the real variable to monitor 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 opportunistic profiteering. "Suppliers are taking advantage of the situation - illegally trading canisters and selling them at a inflated price. In one small town, I heard of cylinders being hoarded and sold to the highest bidder." For now, India's petroleum stocks may be cushioned by global trade flows. But in homes across the country, the more urgent issue is simple: how to get the next gas canister.