🔗 Share this article ‘A Critical Scenario’: Hostilities on Iran Constricts India's Cooking-Gas Availability. People wait in lines to buy fuel canisters for home cooking in Chennai. The repercussions of a conflict being fought nearly 1,864 miles away are now being felt in India's households. As US-Israeli strikes on Iran disrupt energy shipments through the vital shipping lane, supplies of cooking gas are dwindling across India, compelling restaurants to reduce offerings, reduce operating times and in some cases close completely. Social media is flooded by video clips showing lines outside fuel suppliers across Indian urban and rural areas as concerns over fuel supplies grow. Businesses appear the hardest struck: the biggest crunch is in commercial eateries. "The situation is dire. Kitchen fuel simply isn't available," says a official of the an industry group. Most eateries run either on commercial LPG cylinders or direct gas lines, and the shortages are now being experienced across the country. "Many restaurants have shut down - some in Delhi, many in the southern states. People are turning to coal and wood and electronic appliances to keep their operations going." Localized Effects In a financial hub, accounts say up to a fifth of hotels and restaurants are already fully or partly shut as business fuel stocks tighten. In the southern cities of Bangalore and Madras, some restaurants say their fuel reserves have dwindled with scarce alternatives. "Our menu is reduced to coffee and no food items - it is extremely difficult. Businesses are going to suffer," says a business operator in Bengaluru. A eatery in Chennai which has closed its doors due to a shortage of LPG. Restaurant operators are seeking alternatives. "Menus are being curtailed, some are cutting lunch service and opening only for dinner," an industry representative says, adding that shutdowns are varying as supplies come and go. "A number of eateries in Delhi were shut yesterday - a couple are back in business. It's a fluid situation." Retailers report a surge in sales of electronic cooking appliances, with some saying they are facing stockouts. Official Position Yet, the authorities states there is sufficient stock. India has more than 30 crore domestic LPG users and authorities say supplies are being prioritized to households as tensions from the war in the Gulf 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 consignments pass through the critical waterway, the strategic bottleneck now largely blocked by the conflict. The oil ministry says that it ordered refineries to increase LPG output for household consumption, lifting domestic production by about a significant margin. Business-grade fuel is being reserved for essential sectors such as medical and academic centers, while distribution will be "fair and transparent". "Unnecessary hoarding and accumulation has been sparked by rumors. The normal delivery cycle for home fuel remains about under three days," says a ministry representative. Growing Panic Now the anxiety is spreading beyond kitchens. On digital platforms, a widely shared video from Chennai shows a lengthy, winding line of two-wheelers outside a gas outlet. "Anxiety is palpable," the caption reads. India brings in up to 90% of the crude it requires, leaving it highly exposed to interruptions in worldwide shipments. According to data from market experts, concerns about India's broader energy security may be overstated. India imports 90% of its crude oil. Around a significant portion of its crude oil imports - about 2.5 to 2.7 million barrels a day - travel through the passage, largely from Gulf countries. Even if oil shipments through the Strait of Hormuz are hindered, the deficit could be partly offset by higher imports of discounted Russian crude, according to a sector expert. Based on vessel tracking and credible market sources, incremental 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. "Tens of millions of Russian oil barrels are currently on the water in the Indian Ocean and, with only India and China as major buyers, those barrels remain a viable alternative," an analyst noted. LPG: The Real Vulnerability The key weakness is LPG, experts note. India consumes roughly a million barrels a day, but produces only 40-45% domestically, importing the rest - the vast majority through Hormuz. Refineries can adjust processes to extract a bit more LPG, but even a moderate increase would only increase domestic supply to about 47-50% of demand, leaving the country heavily reliant on imports. In short: "Oil import vulnerability can be somewhat alleviated through diversification. Fuel availability remains largely sufficient. LPG availability is the critical issue to watch in the coming weeks." What may be heightening the anxiety on the ground is not just tight supply but uneven distribution - and the common threat of hoarding. An industry representative claims exploitative practices. "Distributors are misusing the situation - illegally trading canisters and selling them at a inflated price. In one small town, I heard of cylinders being stockpiled and sold at a premium." For now, India's petroleum stocks may be cushioned by worldwide shipping. But in kitchens across the country, the more pressing concern is simple: how to get the next refill.
People wait in lines to buy fuel canisters for home cooking in Chennai. The repercussions of a conflict being fought nearly 1,864 miles away are now being felt in India's households. As US-Israeli strikes on Iran disrupt energy shipments through the vital shipping lane, supplies of cooking gas are dwindling across India, compelling restaurants to reduce offerings, reduce operating times and in some cases close completely. Social media is flooded by video clips showing lines outside fuel suppliers across Indian urban and rural areas as concerns over fuel supplies grow. Businesses appear the hardest struck: the biggest crunch is in commercial eateries. "The situation is dire. Kitchen fuel simply isn't available," says a official of the an industry group. Most eateries run either on commercial LPG cylinders or direct gas lines, and the shortages are now being experienced across the country. "Many restaurants have shut down - some in Delhi, many in the southern states. People are turning to coal and wood and electronic appliances to keep their operations going." Localized Effects In a financial hub, accounts say up to a fifth of hotels and restaurants are already fully or partly shut as business fuel stocks tighten. In the southern cities of Bangalore and Madras, some restaurants say their fuel reserves have dwindled with scarce alternatives. "Our menu is reduced to coffee and no food items - it is extremely difficult. Businesses are going to suffer," says a business operator in Bengaluru. A eatery in Chennai which has closed its doors due to a shortage of LPG. Restaurant operators are seeking alternatives. "Menus are being curtailed, some are cutting lunch service and opening only for dinner," an industry representative says, adding that shutdowns are varying as supplies come and go. "A number of eateries in Delhi were shut yesterday - a couple are back in business. It's a fluid situation." Retailers report a surge in sales of electronic cooking appliances, with some saying they are facing stockouts. Official Position Yet, the authorities states there is sufficient stock. India has more than 30 crore domestic LPG users and authorities say supplies are being prioritized to households as tensions from the war in the Gulf 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 consignments pass through the critical waterway, the strategic bottleneck now largely blocked by the conflict. The oil ministry says that it ordered refineries to increase LPG output for household consumption, lifting domestic production by about a significant margin. Business-grade fuel is being reserved for essential sectors such as medical and academic centers, while distribution will be "fair and transparent". "Unnecessary hoarding and accumulation has been sparked by rumors. The normal delivery cycle for home fuel remains about under three days," says a ministry representative. Growing Panic Now the anxiety is spreading beyond kitchens. On digital platforms, a widely shared video from Chennai shows a lengthy, winding line of two-wheelers outside a gas outlet. "Anxiety is palpable," the caption reads. India brings in up to 90% of the crude it requires, leaving it highly exposed to interruptions in worldwide shipments. According to data from market experts, concerns about India's broader energy security may be overstated. India imports 90% of its crude oil. Around a significant portion of its crude oil imports - about 2.5 to 2.7 million barrels a day - travel through the passage, largely from Gulf countries. Even if oil shipments through the Strait of Hormuz are hindered, the deficit could be partly offset by higher imports of discounted Russian crude, according to a sector expert. Based on vessel tracking and credible market sources, incremental 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. "Tens of millions of Russian oil barrels are currently on the water in the Indian Ocean and, with only India and China as major buyers, those barrels remain a viable alternative," an analyst noted. LPG: The Real Vulnerability The key weakness is LPG, experts note. India consumes roughly a million barrels a day, but produces only 40-45% domestically, importing the rest - the vast majority through Hormuz. Refineries can adjust processes to extract a bit more LPG, but even a moderate increase would only increase domestic supply to about 47-50% of demand, leaving the country heavily reliant on imports. In short: "Oil import vulnerability can be somewhat alleviated through diversification. Fuel availability remains largely sufficient. LPG availability is the critical issue to watch in the coming weeks." What may be heightening the anxiety on the ground is not just tight supply but uneven distribution - and the common threat of hoarding. An industry representative claims exploitative practices. "Distributors are misusing the situation - illegally trading canisters and selling them at a inflated price. In one small town, I heard of cylinders being stockpiled and sold at a premium." For now, India's petroleum stocks may be cushioned by worldwide shipping. But in kitchens across the country, the more pressing concern is simple: how to get the next refill.