🔗 Share this article ‘The Situation is Dire’: Hostilities on Iran Constricts India's LPG Stock. People wait in lines to buy cooking gas cylinders for domestic use in an urban center. The repercussions of a military engagement being fought nearly 1,864 miles away are now impacting India's households. As US-Israeli strikes on Iran disrupt energy shipments through the vital shipping lane, availability of liquefied petroleum gas (LPG) are tightening across India, pushing restaurants to reduce offerings, shorten hours and in some cases cease operations entirely. Social media is filled with video clips showing lines outside cooking-gas dealers across Indian urban and rural areas as worries over fuel supplies grow. Commercial LPG users appear the worst hit: the most severe shortage is in commercial eateries. "The state of affairs is alarming. LPG simply cannot be found," says a spokesperson of the National Restaurant Association of India. Most eateries run either on industrial fuel canisters or direct gas lines, and the shortages are now being experienced across the country. "Numerous restaurants have ceased operations - some in Delhi, many in the southern region. People are turning to coal and wood and electric cookers to keep food preparation going." Regional Impact In a financial hub, accounts say up to a significant portion of eateries are already completely or partially closed as commercial LPG supplies dry up. In the southern cities of tech and coastal hubs, some eateries say their cylinder inventory have depleted with scarce alternatives. "Coffee is the sole item we can prepare and nothing else - it is extremely difficult. Operations will be impacted," says a business operator in Bengaluru. A eatery in a southern city which has closed its doors due to a lack of LPG. Restaurant owners are seeking alternatives. "Offering lists are shrinking, some are cutting lunch service and opening only for dinner," an industry representative says, adding that shutdowns are fluctuating as supplies ebb and flow. "Three restaurants in Delhi were shut yesterday - some have resumed operations. It's a changing landscape." Retailers report a surge in sales of induction stoves, with some saying they are facing stockouts. Government Stance Yet, the government insists there is adequate supply. India has more than 300 million household consumers and spokespersons say stocks are being prioritized to households as tensions from the regional hostilities ripple through energy markets. Approximately six out of ten of India's LPG is imported, and about 90% of those imports pass through the Strait of Hormuz, the vital passage now largely blocked by the conflict. The oil ministry says that it directed refineries to maximise LPG output for household consumption, enhancing domestic production by about a quarter. Commercial stock is being reserved for critical services such as healthcare and education, while distribution will be "equitable and clear". "A degree of anxious stocking and hoarding has been caused by rumors. The normal delivery cycle for household cylinders remains about 60 hours," says a government spokesperson. Widening Concern Now the worry is extending beyond kitchens. On online networks, a widely shared video from Chennai shows a extended procession of scooters outside a fuel station. "Concern is genuine," the description reads. India imports up to a vast majority of the oil it uses, leaving it highly exposed to problems in global supplies. According to reports from energy specialists, concerns about India's broader energy security may be exaggerated. India imports 90% of its petroleum. Around a significant portion of its oil purchases - about 2.5 to 2.7 million barrels a day - travel through the waterway, largely from regional suppliers. Even if oil shipments 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 sector expert. Based on shipping data and industry information, increased Russian crude imports could reach around a significant volume of barrels a day, reducing India's effective deficit from exposure to the Strait of Hormuz to about a substantial volume of barrels a day. "A large quantity of Russian oil barrels are currently in transit at sea 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 key weakness is LPG, commentators observe. India consumes roughly one million barrels a day, but produces only less than half domestically, importing the rest - most of it through the chokepoint. Refineries can adjust processes to squeeze out a bit more LPG, but even a limited rise would only raise domestic supply to about under half of demand, leaving the country significantly leaning on imports. In short: "Crude supply risk can be moderately reduced through diversification. Refined product supply remains fairly adequate. LPG availability is the key factor to monitor in the coming weeks." What may be worsening the concern on the ground is not just limited availability but patchy deliveries - and the familiar spectre of hoarding. An industry representative states opportunistic profiteering. "Suppliers are exploiting the situation - illegally trading canisters and selling them at a high cost. In one small town, I heard of cylinders being accumulated and sold to the highest bidder." For now, India's energy imports may be buffered by worldwide shipping. But in kitchens across the country, the more urgent issue is simple: how to get the next gas canister.
People wait in lines to buy cooking gas cylinders for domestic use in an urban center. The repercussions of a military engagement being fought nearly 1,864 miles away are now impacting India's households. As US-Israeli strikes on Iran disrupt energy shipments through the vital shipping lane, availability of liquefied petroleum gas (LPG) are tightening across India, pushing restaurants to reduce offerings, shorten hours and in some cases cease operations entirely. Social media is filled with video clips showing lines outside cooking-gas dealers across Indian urban and rural areas as worries over fuel supplies grow. Commercial LPG users appear the worst hit: the most severe shortage is in commercial eateries. "The state of affairs is alarming. LPG simply cannot be found," says a spokesperson of the National Restaurant Association of India. Most eateries run either on industrial fuel canisters or direct gas lines, and the shortages are now being experienced across the country. "Numerous restaurants have ceased operations - some in Delhi, many in the southern region. People are turning to coal and wood and electric cookers to keep food preparation going." Regional Impact In a financial hub, accounts say up to a significant portion of eateries are already completely or partially closed as commercial LPG supplies dry up. In the southern cities of tech and coastal hubs, some eateries say their cylinder inventory have depleted with scarce alternatives. "Coffee is the sole item we can prepare and nothing else - it is extremely difficult. Operations will be impacted," says a business operator in Bengaluru. A eatery in a southern city which has closed its doors due to a lack of LPG. Restaurant owners are seeking alternatives. "Offering lists are shrinking, some are cutting lunch service and opening only for dinner," an industry representative says, adding that shutdowns are fluctuating as supplies ebb and flow. "Three restaurants in Delhi were shut yesterday - some have resumed operations. It's a changing landscape." Retailers report a surge in sales of induction stoves, with some saying they are facing stockouts. Government Stance Yet, the government insists there is adequate supply. India has more than 300 million household consumers and spokespersons say stocks are being prioritized to households as tensions from the regional hostilities ripple through energy markets. Approximately six out of ten of India's LPG is imported, and about 90% of those imports pass through the Strait of Hormuz, the vital passage now largely blocked by the conflict. The oil ministry says that it directed refineries to maximise LPG output for household consumption, enhancing domestic production by about a quarter. Commercial stock is being reserved for critical services such as healthcare and education, while distribution will be "equitable and clear". "A degree of anxious stocking and hoarding has been caused by rumors. The normal delivery cycle for household cylinders remains about 60 hours," says a government spokesperson. Widening Concern Now the worry is extending beyond kitchens. On online networks, a widely shared video from Chennai shows a extended procession of scooters outside a fuel station. "Concern is genuine," the description reads. India imports up to a vast majority of the oil it uses, leaving it highly exposed to problems in global supplies. According to reports from energy specialists, concerns about India's broader energy security may be exaggerated. India imports 90% of its petroleum. Around a significant portion of its oil purchases - about 2.5 to 2.7 million barrels a day - travel through the waterway, largely from regional suppliers. Even if oil shipments 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 sector expert. Based on shipping data and industry information, increased Russian crude imports could reach around a significant volume of barrels a day, reducing India's effective deficit from exposure to the Strait of Hormuz to about a substantial volume of barrels a day. "A large quantity of Russian oil barrels are currently in transit at sea 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 key weakness is LPG, commentators observe. India consumes roughly one million barrels a day, but produces only less than half domestically, importing the rest - most of it through the chokepoint. Refineries can adjust processes to squeeze out a bit more LPG, but even a limited rise would only raise domestic supply to about under half of demand, leaving the country significantly leaning on imports. In short: "Crude supply risk can be moderately reduced through diversification. Refined product supply remains fairly adequate. LPG availability is the key factor to monitor in the coming weeks." What may be worsening the concern on the ground is not just limited availability but patchy deliveries - and the familiar spectre of hoarding. An industry representative states opportunistic profiteering. "Suppliers are exploiting the situation - illegally trading canisters and selling them at a high cost. In one small town, I heard of cylinders being accumulated and sold to the highest bidder." For now, India's energy imports may be buffered by worldwide shipping. But in kitchens across the country, the more urgent issue is simple: how to get the next gas canister.