‘An Alarming State of Affairs’: War on Iran Squeezes India's Cooking-Gas Availability.

People queue up to buy cooking gas cylinders for domestic use in an Indian city
People wait in lines to buy fuel canisters for household consumption in a major Indian city.

The repercussions of a conflict being fought nearly 1,864 miles away are now impacting India's households.

As US-Israeli strikes on Iran impede energy shipments through the vital shipping lane, supplies of cooking gas are shrinking across India, compelling restaurants to shorten food lists, shorten hours and in some cases close completely.

Social media is awash with video clips showing crowds outside cooking-gas dealers across Indian cities and towns as worries over fuel supplies spread. Restaurant kitchens appear the hardest struck: the biggest crunch is in commercial eateries.

"Conditions are critical. LPG simply is unavailable," says a official of the a major restaurant body.

Most restaurants run either on industrial fuel canisters or direct gas lines, and the lack of supply are now being noticed across the country. "Numerous restaurants have ceased operations - some in the capital, many in the south. People are turning to solid fuels and electric cookers to keep their operations going."

Regional Impact

In a financial hub, local news say up to a significant portion of eateries are already fully or partly shut as cylinder availability dry up. In the southern cities of Bengaluru and Chennai, some establishments say their gas stocks have shrunk with minimal reserves. "We can only make coffee and nothing else - it is extremely difficult. Businesses are going to suffer," says a chain proprietor in Bengaluru.

A closed restaurant shutter in an Indian city
A restaurant in a southern city which has shut down due to a lack of cooking gas.

Restaurant managers are scrambling to adapt. "Food options are being cut, some are opening only for dinner and opening only for dinner," an industry representative says, adding that closures are fluctuating as supplies come and go. "A number of eateries in Delhi were shut yesterday - a couple are back in business. It's a changing landscape."

Retailers observe a increase in sales of electronic cooking appliances, with some saying they are facing stockouts.

Official Position

Yet, the government maintains there is adequate supply.

India has more than a vast number of domestic LPG users and spokespersons say stocks are being reallocated to households as tensions from the regional hostilities impact energy markets.

About a majority of India's LPG is imported, and about the vast majority of those imports pass through the Strait of Hormuz, the strategic bottleneck now effectively closed by the conflict.

The petroleum ministry says that it ordered refineries to boost LPG output for domestic use, raising domestic production by about a significant margin. Non-domestic supply is being prioritised for critical services such as hospitals and educational institutions, while distribution will be "fair and transparent".

"Some panic booking and accumulation has been sparked by rumors. The regular refill period for household cylinders remains about 60 hours," says a ministry representative.

Widening Concern

Now the anxiety is extending beyond kitchens. On social media, a widely shared video from Chennai shows a extended procession of two-wheelers outside a fuel station. "Anxiety is palpable," the text reads.

An oil tanker at sea representing imports
India sources up to 90% of the petroleum it requires, leaving it significantly susceptible to disruptions in international markets.

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

India imports almost all of its petroleum. Around a significant portion of its petroleum shipments - about millions of barrels a day - travel through the waterway, largely from Gulf countries.

Even if petroleum transit through the Strait of Hormuz are blocked, the gap could be partly compensated for by higher imports of competitively priced oil from Russia, according to a industry commentator.

Based on vessel tracking and industry information, additional Russian crude imports could reach around a significant volume of barrels a day, narrowing India's effective deficit from exposure to the Strait of Hormuz to about 1.6 million barrels a day.

"Tens of millions of Russian oil barrels are currently floating on ships in the Indian Ocean and, with only key buyers as major buyers, those barrels remain a ready fallback," an analyst noted.

LPG: The Real Vulnerability

The primary concern is LPG, commentators observe.

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

Refineries can modify output to squeeze out a bit more LPG, but even a moderate increase would only raise 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 alternative sourcing. Fuel availability remains fairly adequate. Cooking gas supply is the critical issue to watch in the coming weeks."

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

An industry representative states price gouging.

"Suppliers are misusing the situation - selling fuel on the black market and selling them at a inflated price. In one small town, I heard of cylinders being accumulated and sold at a premium."

For now, India's petroleum stocks may be protected by global trade flows. But in restaurants across the country, the more immediate question is simple: how to get the next gas canister.

Nathan Walker
Nathan Walker

A passionate writer and thinker sharing insights on creativity and personal development.