‘An Alarming State of Affairs’: Conflict on Iran Squeezes India's LPG Supplies.

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

As military actions on Iran impede energy deliveries through the Strait of Hormuz, stocks of cooking gas are shrinking across India, forcing restaurants to shorten food lists, close earlier and in some cases close completely.

Social media is flooded by video clips showing queues outside cooking-gas dealers across Indian metros and localities as worries over fuel supplies grow. Businesses appear the worst hit: the most severe shortage is in food service establishments.

"Conditions are critical. LPG simply is unavailable," says a representative of the a major restaurant body.

Most restaurants run either on commercial LPG cylinders or direct gas lines, and the scarcities are now being felt across the country. "A lot of restaurants have closed - some in Delhi, many in the southern region. People are adopting coal and wood and electric cookers to keep food preparation going."

City-Specific Fallout

In a western metro, accounts say up to a significant portion of hospitality businesses are already fully or partly shut as business fuel stocks dry up. In the southern cities of Bangalore and Madras, some eateries say their gas stocks have depleted with scarce alternatives. "Our menu is reduced to coffee and no other dishes - it is nothing less than pathetic. Commerce will take a hit," says a restaurant owner in Bengaluru.

Restaurant owners are rushing to adjust. "Food options are being cut, some are cutting lunch service and reducing hours," an industry representative says, adding that stoppages are changing as supplies ebb and flow. "A number of eateries in Delhi were shut yesterday - two have already reopened. It's a changing landscape."

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

Government Stance

Yet, the government maintains there is adequate supply.

India has more than a vast number of household consumers and spokespersons say supplies are being reallocated to households as tensions 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 Strait of Hormuz, the narrow Gulf chokepoint now significantly disrupted by the hostilities.

The oil ministry says that it directed refineries to increase LPG output for household consumption, enhancing domestic production by about a significant margin. Non-domestic supply is being reserved for vital industries such as hospitals and educational institutions, while distribution will be "equitable and clear".

"Unnecessary hoarding and stockpiling has been triggered by false reports. The standard supply timeline for home fuel remains about under three days," says a government spokesperson.

Widening Concern

Now the concern is spreading beyond kitchens. On online networks, a widely shared video from Chennai shows a long, snaking queue of motorbikes outside a petrol pump. "Anxiety is palpable," the caption reads.

According to analysis from energy specialists, concerns about India's broader petroleum stocks may be exaggerated.

India imports the overwhelming majority of its oil. Around 50% of its oil purchases - about 2.5 to 2.7 million barrels a day - travel through the waterway, largely from Gulf countries.

Even if crude flows through the Strait of Hormuz are blocked, the gap could be partly made up by higher imports of competitively priced oil from Russia, according to a sector expert.

Based on vessel tracking 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 ready fallback," an analyst noted.

Cooking Gas: The Critical Weakness

The primary concern is cooking gas, experts note.

India consumes roughly one million barrels a day, but produces only 40-45% domestically, importing the rest - the vast majority through the chokepoint.

Refineries can adjust processes to extract a bit more LPG, but even a limited rise 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 partially mitigated through diversification. Refined product supply remains relatively comfortable. LPG availability is the real variable to track in the coming weeks."

What may be intensifying the anxiety on the ground is not just scarcity but uneven distribution - and the usual problem of hoarding.

An industry representative states exploitative practices.

"Suppliers are misusing the situation - selling fuel on the black market and selling them at a high cost. In one small town, I heard of cylinders being accumulated and sold to the highest bidder."

For now, India's energy imports may be buffered by international market dynamics. But in restaurants across the country, the more urgent issue is simple: how to get the next cylinder.