‘The Situation is Dire’: Hostilities on Iran Constricts India's LPG Availability.

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

As aerial attacks on Iran disrupt energy deliveries through the Strait of Hormuz, supplies of liquefied petroleum gas (LPG) are tightening across India, compelling restaurants to cut menus, close earlier and in some cases shut down altogether.

Social media is filled with video clips showing lines outside fuel suppliers across Indian cities and towns as worries over fuel supplies grow. Commercial LPG users appear the worst hit: the most severe shortage is in restaurant kitchens.

"Conditions are critical. Cooking gas simply cannot be found," says a official of the an industry group.

Most eateries run either on business-grade gas tanks or piped gas, and the scarcities are now being noticed across the country. "Many restaurants have closed - some in Delhi, many in the southern states. People are switching to solid fuels and electronic appliances to keep their operations going."

City-Specific Fallout

In a financial hub, media reports say up to a significant portion of hotels and restaurants are already fully or partly shut as business fuel stocks dry up. In the southern cities of tech and coastal hubs, some restaurants say their cylinder inventory have depleted with minimal reserves. "Coffee is the sole item we can prepare and nothing else - it is extremely difficult. Businesses are going to suffer," says a restaurant owner in Bengaluru.

Restaurant managers are rushing to adjust. "Food options are being cut, some are cutting lunch service and operating solely in the evening," an industry representative says, adding that stoppages are varying as supplies ebb and flow. "Three restaurants in Delhi were shut yesterday - some have resumed operations. It's a changing landscape."

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

Authority's View

Yet, the government maintains there is sufficient stock.

India has more than 300 million home fuel subscribers and spokespersons say supplies are being redirected to households as tensions from the war in the Gulf impact energy markets.

Approximately 60% of India's LPG is sourced from abroad, and about nine out of ten of those shipments pass through the Strait of Hormuz, the strategic bottleneck now significantly disrupted by the hostilities.

The oil ministry says that it instructed refineries to maximise LPG output for domestic use, lifting domestic production by about 25%. Business-grade fuel is being prioritised for critical services such as healthcare and education, while distribution will be "fair and transparent".

"A degree of anxious stocking and stockpiling has been sparked by false reports. The standard supply timeline for home fuel remains about under three days," says a senior official.

Growing Panic

Now the worry is spreading beyond kitchens. On online networks, a widely shared video from Chennai shows a extended procession of two-wheelers outside a gas outlet. "The panic is real," the text reads.

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

India imports almost all of its oil. Around a significant portion of its petroleum shipments - about 2.5 to 2.7 million barrels a day - travel through the waterway, largely from regional suppliers.

Even if crude flows through the Strait of Hormuz are hindered, the gap could be partly compensated for by higher imports of Russian petroleum, according to a sector expert.

Based on maritime intelligence and expert analysis, increased Russian crude imports could reach around a significant volume of barrels a day, lessening India's effective shortfall from exposure to the Strait of Hormuz to about a substantial volume of barrels a day.

"Around 25-30 million 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 available backup," an analyst noted.

Cooking Gas: The Critical Weakness

The primary concern is kitchen fuel, experts note.

India consumes roughly 1 million barrels a day, but produces only less than half domestically, importing the rest - the vast majority 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 diversification. Fuel availability remains fairly adequate. LPG availability is the real variable to watch 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 claims exploitative practices.

"Suppliers are taking advantage of the situation - illegally trading canisters and selling them at a premium. In one small town, I heard of cylinders being hoarded and sold at a premium."

For now, India's oil supplies may be protected by global trade flows. But in kitchens across the country, the more urgent issue is simple: how to get the next cylinder.