🔗 Share this article ‘A Critical Scenario’: War on Iran Tightens India's LPG Stock. People line up to buy LPG tanks for home cooking in Chennai. The ripple effects of a war being fought nearly a significant distance away are now reaching India's households. As military actions on Iran impede energy transports through the vital shipping lane, supplies of cooking gas are shrinking across India, forcing restaurants to reduce offerings, close earlier and in some cases shut down altogether. Social media is flooded by video clips showing crowds outside LPG distributors across Indian metros and localities as worries over fuel supplies grow. Restaurant kitchens appear the worst hit: the biggest crunch is in commercial eateries. "The situation is dire. Kitchen fuel simply is unavailable," says a spokesperson of the National Restaurant Association of India. Most restaurants run either on commercial LPG cylinders or piped gas, and the shortages are now being experienced across the country. "A lot of restaurants have ceased operations - some in northern India, many in the southern states. People are switching to coal and wood and electronic appliances to keep kitchens going." Localized Effects In Mumbai, local news say up to a 20% of hospitality businesses are already operating at reduced capacity as cylinder availability dwindle. In the southern cities of Bangalore and Madras, some restaurants say their cylinder inventory have depleted with scarce alternatives. "We can only make coffee and nothing else - it is nothing less than pathetic. Commerce will take a hit," says a business operator in Bengaluru. A eatery in a southern city which has shut down due to a lack of LPG. Restaurant operators are seeking alternatives. "Offering lists are shrinking, some are opening only for dinner and reducing hours," an industry representative says, adding that closures are varying as supplies wax and wane. "Several establishments in Delhi were shut yesterday - a couple are back in business. It's a dynamic scenario." Retailers observe a spike in sales of electric cookers, with some saying they are running out of them. Authority's View Yet, the government insists there is no shortage. India has more than 300 million household consumers and spokespersons say cylinders are being prioritized to households as tensions from the war in the Gulf affect energy markets. Approximately six out of ten of India's LPG is brought in from overseas, and about 90% of those imports pass through the Strait of Hormuz, the vital passage now effectively closed by the war. The petroleum ministry says that it ordered refineries to boost LPG output for household consumption, raising domestic production by about a significant margin. Commercial stock is being allocated for vital industries such as hospitals and educational institutions, while distribution will be "equitable and clear". "Some panic booking and hoarding has been triggered by misinformation. The standard supply timeline for household cylinders remains about 60 hours," says a senior official. Spreading Anxiety Now the concern is spreading beyond kitchens. On online networks, a widely shared video from Chennai shows a long, snaking queue of scooters outside a fuel station. "The panic is real," the description reads. India brings in up to 90% of the petroleum it consumes, leaving it significantly susceptible to interruptions in global supplies. According to analysis from industry analysts, concerns about India's broader fuel supplies may be overstated. India imports the overwhelming majority of its petroleum. Around 50% of its oil purchases - about millions of barrels a day - travel through the passage, largely from Middle Eastern nations. Even if oil shipments through the Strait of Hormuz are disrupted, the gap could be partly made up by higher imports of discounted Russian crude, according to a sector expert. Based on maritime intelligence and credible market sources, additional 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 two major Asian economies as major buyers, those barrels remain a ready fallback," an analyst noted. Cooking Gas: The Critical Weakness The real vulnerability is kitchen fuel, commentators observe. India consumes roughly one million barrels a day, but produces only less than half domestically, importing the rest - the vast majority through the chokepoint. Refineries can modify output to produce a bit more LPG, but even a moderate increase would only raise domestic supply to about 47-50% of demand, leaving the country significantly leaning on imports. In short: "Petroleum shortage concerns can be somewhat alleviated through diversification. Fuel availability remains largely sufficient. Cooking gas supply is the real variable to monitor in the coming weeks." What may be heightening the concern on the ground is not just scarcity but patchy deliveries - and the usual problem of panic buying. An industry representative claims opportunistic profiteering. "Suppliers are taking advantage of the situation - black-marketing cylinders and selling them at a high cost. In one small town, I heard of cylinders being stockpiled and auctioned off." For now, India's petroleum stocks may be protected by worldwide shipping. But in restaurants across the country, the more urgent issue is simple: how to get the next refill.
People line up to buy LPG tanks for home cooking in Chennai. The ripple effects of a war being fought nearly a significant distance away are now reaching India's households. As military actions on Iran impede energy transports through the vital shipping lane, supplies of cooking gas are shrinking across India, forcing restaurants to reduce offerings, close earlier and in some cases shut down altogether. Social media is flooded by video clips showing crowds outside LPG distributors across Indian metros and localities as worries over fuel supplies grow. Restaurant kitchens appear the worst hit: the biggest crunch is in commercial eateries. "The situation is dire. Kitchen fuel simply is unavailable," says a spokesperson of the National Restaurant Association of India. Most restaurants run either on commercial LPG cylinders or piped gas, and the shortages are now being experienced across the country. "A lot of restaurants have ceased operations - some in northern India, many in the southern states. People are switching to coal and wood and electronic appliances to keep kitchens going." Localized Effects In Mumbai, local news say up to a 20% of hospitality businesses are already operating at reduced capacity as cylinder availability dwindle. In the southern cities of Bangalore and Madras, some restaurants say their cylinder inventory have depleted with scarce alternatives. "We can only make coffee and nothing else - it is nothing less than pathetic. Commerce will take a hit," says a business operator in Bengaluru. A eatery in a southern city which has shut down due to a lack of LPG. Restaurant operators are seeking alternatives. "Offering lists are shrinking, some are opening only for dinner and reducing hours," an industry representative says, adding that closures are varying as supplies wax and wane. "Several establishments in Delhi were shut yesterday - a couple are back in business. It's a dynamic scenario." Retailers observe a spike in sales of electric cookers, with some saying they are running out of them. Authority's View Yet, the government insists there is no shortage. India has more than 300 million household consumers and spokespersons say cylinders are being prioritized to households as tensions from the war in the Gulf affect energy markets. Approximately six out of ten of India's LPG is brought in from overseas, and about 90% of those imports pass through the Strait of Hormuz, the vital passage now effectively closed by the war. The petroleum ministry says that it ordered refineries to boost LPG output for household consumption, raising domestic production by about a significant margin. Commercial stock is being allocated for vital industries such as hospitals and educational institutions, while distribution will be "equitable and clear". "Some panic booking and hoarding has been triggered by misinformation. The standard supply timeline for household cylinders remains about 60 hours," says a senior official. Spreading Anxiety Now the concern is spreading beyond kitchens. On online networks, a widely shared video from Chennai shows a long, snaking queue of scooters outside a fuel station. "The panic is real," the description reads. India brings in up to 90% of the petroleum it consumes, leaving it significantly susceptible to interruptions in global supplies. According to analysis from industry analysts, concerns about India's broader fuel supplies may be overstated. India imports the overwhelming majority of its petroleum. Around 50% of its oil purchases - about millions of barrels a day - travel through the passage, largely from Middle Eastern nations. Even if oil shipments through the Strait of Hormuz are disrupted, the gap could be partly made up by higher imports of discounted Russian crude, according to a sector expert. Based on maritime intelligence and credible market sources, additional 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 two major Asian economies as major buyers, those barrels remain a ready fallback," an analyst noted. Cooking Gas: The Critical Weakness The real vulnerability is kitchen fuel, commentators observe. India consumes roughly one million barrels a day, but produces only less than half domestically, importing the rest - the vast majority through the chokepoint. Refineries can modify output to produce a bit more LPG, but even a moderate increase would only raise domestic supply to about 47-50% of demand, leaving the country significantly leaning on imports. In short: "Petroleum shortage concerns can be somewhat alleviated through diversification. Fuel availability remains largely sufficient. Cooking gas supply is the real variable to monitor in the coming weeks." What may be heightening the concern on the ground is not just scarcity but patchy deliveries - and the usual problem of panic buying. An industry representative claims opportunistic profiteering. "Suppliers are taking advantage of the situation - black-marketing cylinders and selling them at a high cost. In one small town, I heard of cylinders being stockpiled and auctioned off." For now, India's petroleum stocks may be protected by worldwide shipping. But in restaurants across the country, the more urgent issue is simple: how to get the next refill.