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

The repercussions of a conflict being fought nearly a significant distance away are now impacting India's homes.

As military actions on Iran hinder energy transports through the Strait of Hormuz, supplies of kitchen fuel are dwindling across India, pushing restaurants to reduce offerings, reduce operating times and in some cases close completely.

Social media is flooded by video clips showing lines outside fuel suppliers across Indian urban and rural areas as concerns over fuel supplies spread. Restaurant kitchens appear the worst hit: the most severe shortage is in restaurant kitchens.

"Conditions are critical. Kitchen fuel simply isn't available," says a representative of the National Restaurant Association of India.

Most eateries run either on commercial LPG cylinders or piped gas, and the shortages are now being experienced across the country. "A lot of restaurants have closed - some in the capital, many in the southern states. People are turning to coal and wood and electronic appliances to keep their operations going."

Regional Impact

In Mumbai, media reports say up to a 20% of hospitality businesses are already operating at reduced capacity as business fuel stocks tighten. In the southern cities of Bangalore and Madras, some restaurants say their gas stocks have dwindled with scarce alternatives. "Coffee is the sole item we can prepare and no other dishes - it is extremely difficult. Commerce will take a hit," says a business operator in Bengaluru.

Restaurant managers are scrambling to adapt. "Offering lists are shrinking, some are cutting lunch service and reducing hours," an industry representative says, adding that stoppages are varying as supplies come and go. "A number of eateries in Delhi were shut yesterday - some have resumed operations. It's a changing landscape."

Retailers report a surge in sales of induction stoves, with some saying they are selling out quickly.

Government Stance

Yet, the authorities insists there is sufficient stock.

India has more than 300 million household consumers and spokespersons say stocks are being reallocated to households as conflict-related stress from the Middle East conflict impact energy markets.

Roughly a majority of India's LPG is brought in from overseas, and about nine out of ten of those imports pass through the critical waterway, the strategic bottleneck now significantly disrupted by the war.

The relevant department says that it instructed refineries to boost LPG output for home needs, lifting domestic production by about 25%. Non-domestic supply is being prioritised for vital industries such as healthcare and education, while distribution will be "equitable and clear".

"Some panic booking and accumulation has been triggered by misinformation. The standard supply timeline for home fuel remains about two-and-a-half days," says a ministry representative.

Growing Panic

Now the concern is spreading beyond kitchens. On online networks, 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 energy security may be exaggerated.

India imports almost all of its oil. Around 50% of its oil purchases - about millions of barrels a day - travel through the strait, largely from Gulf countries.

Even if petroleum transit through the Strait of Hormuz are disrupted, the gap could be partly compensated for by higher imports of competitively priced oil from Russia, according to a refinery and oil markets analyst.

Based on maritime intelligence and industry information, incremental Russian crude imports could reach around 1-1.2 million barrels a day, reducing India's effective deficit 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 India and China as major buyers, those barrels remain a ready fallback," an analyst noted.

Cooking Gas: The Critical Weakness

The primary concern is LPG, experts note.

India consumes roughly 1 million barrels a day, but produces only less than half domestically, importing the rest - 80–90% through the chokepoint.

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

In short: "Petroleum shortage concerns can be partially mitigated through varied suppliers. Fuel availability remains largely sufficient. LPG availability is the key factor to track in the coming weeks."

What may be worsening the anxiety on the ground is not just tight supply but patchy deliveries - and the common threat of panic buying.

An industry representative states price gouging.

"Distributors are misusing the situation - selling fuel on the black market and selling them at a premium. In one small town, I heard of cylinders being hoarded and auctioned off."

For now, India's petroleum stocks may be protected by worldwide shipping. But in kitchens across the country, the more immediate question is simple: how to get the next refill.