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

The ripple effects of a war being fought nearly 3,000km away are now reaching India's households.

As military actions on Iran impede energy deliveries through the Strait of Hormuz, supplies of cooking gas are dwindling across India, forcing restaurants to cut menus, close earlier and in some cases shut down altogether.

Social media is awash with video clips showing crowds outside cooking-gas dealers across Indian metros and localities as worries over fuel supplies grow. Commercial LPG users appear the hardest struck: the sharpest squeeze is in food service establishments.

"The situation is dire. Cooking gas simply cannot be found," says a spokesperson of the a major restaurant body.

Most eateries run either on commercial LPG cylinders or direct gas lines, and the shortages are now being noticed across the country. "A lot of restaurants have ceased operations - some in the capital, many in the south. People are adopting solid fuels and electric cookers to keep kitchens going."

City-Specific Fallout

In a western metro, local news say up to a fifth of hotels and restaurants are already operating at reduced capacity as commercial LPG supplies tighten. In the southern cities of tech and coastal hubs, some eateries say their fuel reserves have dwindled with little backup. "Our menu is reduced to coffee and nothing else - it is nothing less than pathetic. Operations will be impacted," says a chain proprietor in Bengaluru.

Restaurant managers are seeking alternatives. "Food options are being cut, some are skipping midday meals and opening only for dinner," an industry representative says, adding that stoppages are fluctuating as supplies wax and wane. "Three restaurants in Delhi were shut yesterday - a couple are back in business. It's a changing landscape."

Retailers report a increase in sales of electric cookers, with some saying they are running out of them.

Official Position

Yet, the authorities maintains there is no shortage.

India has more than 300 million home fuel subscribers and authorities say supplies are being prioritized to households as conflict-related stress from the Middle East conflict impact energy markets.

About six out of ten of India's LPG is brought in from overseas, and about nine out of ten of those shipments pass through the key maritime route, the vital passage now largely blocked by the conflict.

The petroleum ministry says that it directed refineries to increase LPG output for home needs, enhancing domestic production by about a quarter. Commercial stock is being prioritised for essential sectors such as hospitals and educational institutions, while distribution will be "just and open".

"Some panic booking and hoarding has been sparked by misinformation. The normal delivery cycle for home fuel remains about 60 hours," says a ministry representative.

Widening Concern

Now the worry is spreading beyond kitchens. On digital platforms, a widely shared video from Chennai shows a long, snaking queue of scooters outside a petrol pump. "The panic is real," the text reads.

According to analysis from energy specialists, concerns about India's broader energy security may be premature.

India imports the overwhelming majority of its crude oil. Around 50% of its petroleum shipments - about millions of barrels a day - travel through the strait, largely from regional suppliers.

Even if oil shipments through the Strait of Hormuz are disrupted, the shortfall could be partly made up by higher imports of Russian petroleum, according to a industry commentator.

Based on shipping data and credible market sources, 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.

"Around 25-30 million 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.

LPG: The Real Vulnerability

The real vulnerability is cooking gas, analysts say.

India consumes roughly 1 million barrels a day, but produces only a minority share domestically, importing the rest - most of it through the Strait.

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

In short: "Oil import vulnerability can be somewhat alleviated through varied suppliers. Processed petroleum stocks remains fairly adequate. Cooking gas supply is the key factor to watch in the coming weeks."

What may be worsening the anxiety on the ground is not just scarcity but erratic supply chains - and the common threat of hoarding.

An industry representative states exploitative practices.

"Distributors are exploiting 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 at a premium."

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