‘A Critical Scenario’: Hostilities on Iran Tightens India's Cooking-Gas Availability.

People queue up to buy cooking gas cylinders for domestic use in an Indian city
People line up to buy cooking gas cylinders for household consumption in Chennai.

The repercussions of a war being fought nearly a significant distance away are now being felt in India's households.

As US-Israeli strikes on Iran hinder energy shipments through the vital shipping lane, availability of liquefied petroleum gas (LPG) are shrinking across India, forcing restaurants to reduce offerings, shorten hours and in some cases shut down altogether.

Social media is filled with video clips showing queues outside LPG distributors across Indian metros and localities as worries over fuel supplies grow. Commercial LPG users appear the worst hit: the most severe shortage is in commercial eateries.

"The situation is dire. Kitchen fuel simply isn't available," says a representative of the National Restaurant Association of India.

Most restaurants run either on industrial fuel canisters or direct gas lines, and the scarcities are now being felt across the country. "Many restaurants have ceased operations - some in the capital, many in the southern states. People are switching to solid fuels and induction stoves to keep kitchens going."

City-Specific Fallout

In a western metro, local news say up to a fifth of hospitality businesses are already operating at reduced capacity as cylinder availability dwindle. In the southern cities of Bengaluru and Chennai, some eateries say their fuel reserves have dwindled with minimal reserves. "Coffee is the sole item we can prepare and no food items - it is extremely difficult. Commerce will take a hit," says a business operator in Bengaluru.

A closed restaurant shutter in an Indian city
A food joint in Chennai which has shut down due to a shortage of cooking gas.

Restaurant owners are seeking alternatives. "Offering lists are shrinking, some are skipping midday meals and opening only for dinner," an industry representative says, adding that shutdowns are varying as supplies wax and wane. "Three restaurants in Delhi were shut yesterday - a couple are back in business. It's a fluid situation."

Retailers observe a increase in sales of induction stoves, with some saying they are running out of them.

Authority's View

Yet, the government states there is adequate supply.

India has more than a vast number of household consumers and authorities say supplies are being redirected to households as tensions from the Middle East conflict affect energy markets.

Approximately 60% of India's LPG is sourced from abroad, and about 90% of those imports pass through the Strait of Hormuz, the narrow Gulf chokepoint now effectively closed by the war.

The petroleum ministry says that it directed refineries to increase LPG output for household consumption, enhancing domestic production by about a significant margin. Commercial stock is being prioritised for critical services such as medical and academic centers, while distribution will be "fair and transparent".

"Some panic booking and hoarding has been triggered by rumors. The normal delivery cycle for domestic LPG remains about 60 hours," says a government spokesperson.

Widening Concern

Now the worry is moving beyond kitchens. On online networks, a widely shared video from Chennai shows a lengthy, winding line of motorbikes outside a petrol pump. "The panic is real," the description reads.

An oil tanker at sea representing imports
India imports up to most of the oil it uses, leaving it particularly vulnerable to interruptions in worldwide shipments.

According to analysis from energy specialists, concerns about India's broader fuel supplies may be overstated.

India imports 90% of its crude oil. Around half of its oil purchases - about 2.5 to 2.7 million barrels a day - travel through the passage, largely from Middle Eastern nations.

Even if oil shipments through the Strait of Hormuz are blocked, the gap could be partly offset by higher imports of discounted Russian crude, according to a sector expert.

Based on shipping data and expert analysis, increased Russian crude imports could reach around a significant volume of barrels a day, narrowing India's effective gap from exposure to the Strait of Hormuz to about 1.6 million barrels a day.

"Tens of millions 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 ready fallback," an analyst noted.

Cooking Gas: The Critical Weakness

The key weakness is LPG, commentators observe.

India consumes roughly 1 million barrels a day, but produces only a minority share domestically, importing the rest - 80–90% through Hormuz.

Refineries can modify output to squeeze out a bit more LPG, but even a 10-20% boost would only raise domestic supply to about under half of demand, leaving the country significantly leaning on imports.

In short: "Petroleum shortage concerns can be moderately reduced through diversification. Processed petroleum stocks remains largely sufficient. LPG availability is the critical issue to track in the coming weeks."

What may be intensifying the panic on the ground is not just limited availability but uneven distribution - and the familiar spectre of stockpiling.

An industry representative states exploitative practices.

"Retailers are misusing the situation - black-marketing cylinders and selling them at a premium. In one small town, I heard of cylinders being stockpiled and sold to the highest bidder."

For now, India's energy imports may be cushioned by worldwide shipping. But in kitchens across the country, the more pressing concern is simple: how to get the next gas canister.

Mark Keith
Mark Keith

A seasoned business strategist with over 15 years of experience in helping startups scale and thrive in competitive markets.