‘The Situation is Dire’: Conflict on Iran Squeezes India's Cooking-Gas Availability.

People queue up to buy cooking gas cylinders for domestic use in an Indian city
People line up to buy cooking gas cylinders for domestic use in a major Indian city.

The ripple effects of a war being fought nearly a significant distance away are now being felt in India's homes.

As aerial attacks on Iran impede energy transports through the key maritime chokepoint, supplies of liquefied petroleum gas (LPG) are shrinking across India, forcing restaurants to reduce offerings, close earlier and in some cases close completely.

Social media is filled with video clips showing lines outside cooking-gas dealers across Indian metros and localities as anxieties over fuel supplies escalate. Restaurant kitchens appear the hardest struck: the sharpest squeeze is in commercial eateries.

"The state of affairs is alarming. Kitchen fuel simply isn't available," says a spokesperson of the National Restaurant Association of India.

Most restaurants run either on industrial fuel canisters or direct gas lines, and the scarcities are now being noticed across the country. "A lot of restaurants have shut down - some in northern India, many in the southern states. People are switching to coal and wood and electric cookers to keep their operations going."

City-Specific Fallout

In a financial hub, local news say up to a 20% of hospitality businesses are already operating at reduced capacity as commercial LPG supplies tighten. In the southern cities of Bengaluru and Chennai, some establishments say their cylinder inventory have dwindled with minimal reserves. "Coffee is the sole item we can prepare and nothing else - it is nothing less than pathetic. Commerce will take a hit," says a chain proprietor in Bengaluru.

A closed restaurant shutter in an Indian city
A restaurant in a southern city which has closed its doors due to a shortage of cooking gas.

Restaurant owners are seeking alternatives. "Offering lists are shrinking, some are opening only for dinner and reducing hours," an industry representative says, adding that stoppages are varying as supplies come and go. "Several establishments in Delhi were shut yesterday - two have already reopened. It's a dynamic scenario."

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

Government Stance

Yet, the officials states there is no shortage.

India has more than 30 crore domestic LPG users and spokespersons say supplies are being prioritized to households as tensions from the war in the Gulf affect energy markets.

Approximately a majority of India's LPG is sourced from abroad, and about nine out of ten of those imports pass through the Strait of Hormuz, the narrow Gulf chokepoint now significantly disrupted by the conflict.

The petroleum ministry says that it ordered refineries to maximise LPG output for domestic use, lifting domestic production by about a quarter. Commercial stock is being allocated for critical services such as hospitals and educational institutions, while distribution will be "just and open".

"A degree of anxious stocking and hoarding has been sparked by rumors. The regular refill period for household cylinders remains about two-and-a-half days," says a senior official.

Growing Panic

Now the worry is extending beyond kitchens. On online networks, a widely shared video from Chennai shows a long, snaking queue of two-wheelers outside a petrol pump. "Concern is genuine," the caption reads.

An oil tanker at sea representing imports
India brings in up to most of the oil it consumes, leaving it highly exposed to problems in global supplies.

According to reports from industry analysts, concerns about India's broader petroleum stocks may be premature.

India imports the overwhelming majority of its petroleum. Around 50% of its crude oil imports - about 2.5-2.7 million barrels a day - travel through the passage, largely from regional suppliers.

Even if crude flows through the Strait of Hormuz are hindered, the gap could be partly offset by higher imports of competitively priced oil from Russia, according to a refinery and oil markets analyst.

Based on shipping data and credible market sources, additional Russian crude imports could reach around a significant volume of barrels a day, lessening India's effective deficit from exposure to the Strait of Hormuz to about 1.6 million 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.

Kitchen Fuel: The Primary Concern

The primary concern is LPG, experts note.

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

Refineries can tweak operations to produce a bit more LPG, but even a limited rise would only increase domestic supply to about around half of demand, leaving the country significantly leaning on imports.

In short: "Oil import vulnerability can be partially mitigated through diversification. Refined product supply remains fairly adequate. Cooking gas supply is the key factor to monitor in the coming weeks."

What may be heightening the anxiety on the ground is not just limited availability but erratic supply chains - and the usual problem of panic buying.

An industry representative claims exploitative practices.

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

For now, India's energy imports may be protected by worldwide shipping. But in homes across the country, the more immediate question is simple: how to get the next cylinder.

Rebecca Alvarado
Rebecca Alvarado

A seasoned gaming analyst with over a decade of experience in reviewing online casinos and developing winning strategies.