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

The shockwaves of a military engagement being fought nearly 3,000km away are now reaching India's households.

As US-Israeli strikes on Iran disrupt energy shipments through the key maritime chokepoint, availability of cooking gas are shrinking across India, pushing restaurants to reduce offerings, shorten hours and in some cases close completely.

Social media is awash with video clips showing crowds outside fuel suppliers across Indian urban and rural areas as anxieties over fuel supplies spread. Restaurant kitchens appear the hardest struck: the sharpest squeeze is in food service establishments.

"The state of affairs is alarming. Kitchen fuel simply cannot be found," says a spokesperson of the National Restaurant Association of India.

Most food outlets run either on industrial fuel canisters or pipeline-supplied fuel, and the lack of supply are now being noticed across the country. "Numerous restaurants have shut down - some in Delhi, many in the southern states. People are adopting solid fuels and electronic appliances to keep food preparation going."

Regional Impact

In a financial hub, accounts say up to a 20% of eateries are already completely or partially closed as business fuel stocks tighten. In the southern cities of Bangalore and Madras, some establishments say their gas stocks have shrunk with minimal reserves. "Our menu is reduced to coffee and no food items - it is extremely difficult. Commerce will take a hit," says a business operator in Bengaluru.

Restaurant operators are seeking alternatives. "Menus are being curtailed, some are skipping midday meals and reducing hours," an industry representative says, adding that shutdowns are changing as supplies wax and wane. "Several establishments in Delhi were shut yesterday - a couple are back in business. It's a changing landscape."

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

Authority's View

Yet, the officials states there is adequate supply.

India has more than 30 crore domestic LPG users and officials say stocks are being reallocated to households as conflict-related stress from the war in the Gulf ripple through energy markets.

About 60% of India's LPG is sourced from abroad, and about the vast majority of those consignments pass through the critical waterway, the narrow Gulf chokepoint now significantly disrupted by the war.

The oil ministry says that it ordered refineries to increase LPG output for household consumption, raising domestic production by about 25%. Business-grade fuel is being allocated for critical services such as healthcare and education, while distribution will be "equitable and clear".

"A degree of anxious stocking and hoarding has been triggered by misinformation. The normal delivery cycle for home fuel remains about two-and-a-half days," says a government spokesperson.

Growing Panic

Now the worry is moving beyond kitchens. On digital platforms, a widely shared video from Chennai shows a long, snaking queue of motorbikes outside a gas outlet. "Anxiety is palpable," the text reads.

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

India imports almost all 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 Middle Eastern nations.

Even if petroleum transit through the Strait of Hormuz are hindered, the deficit could be partly compensated for by higher imports of discounted Russian crude, according to a refinery and oil markets analyst.

Based on maritime intelligence and industry information, increased Russian crude imports could reach around a significant volume of barrels a day, reducing India's effective shortfall from exposure to the Strait of Hormuz to about 1.6 million barrels a day.

"Around 25-30 million Russian oil barrels are currently floating on ships in the Indian Ocean and, with only key buyers as major buyers, those barrels remain a viable alternative," an analyst noted.

LPG: The Real Vulnerability

The real vulnerability is cooking gas, commentators observe.

India consumes roughly a million barrels a day, but produces only less than half domestically, importing the rest - the vast majority through Hormuz.

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

In short: "Crude supply risk can be partially mitigated through alternative sourcing. Fuel availability remains relatively comfortable. LPG availability is the critical issue to monitor in the coming weeks."

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

An industry representative states exploitative practices.

"Retailers are taking advantage of the situation - black-marketing cylinders and selling them at a inflated price. In one small town, I heard of cylinders being hoarded and sold to the highest bidder."

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 gas canister.