‘The Situation is Dire’: Hostilities on Iran Tightens India's Kitchen Fuel Supplies.

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 Chennai.

The repercussions of a war being fought nearly 1,864 miles away are now being felt in India's kitchens.

As aerial attacks on Iran hinder energy deliveries through the Strait of Hormuz, availability of liquefied petroleum gas (LPG) are tightening across India, compelling restaurants to reduce offerings, reduce operating times and in some cases cease operations entirely.

Social media is flooded by video clips showing lines outside fuel suppliers across Indian cities and towns as worries over fuel supplies escalate. Businesses appear the worst hit: the biggest crunch is in commercial eateries.

"Conditions are critical. LPG simply is unavailable," says a spokesperson of the National Restaurant Association of India.

Most eateries run either on commercial LPG cylinders or pipeline-supplied fuel, and the shortages are now being noticed across the country. "Numerous restaurants have shut down - some in the capital, many in the south. People are adopting coal and wood and electric cookers to keep food preparation going."

City-Specific Fallout

In a financial hub, local news say up to a fifth of hotels and restaurants are already operating at reduced capacity as business fuel stocks dry up. In the southern cities of Bangalore and Madras, some eateries say their gas stocks have dwindled with little backup. "We can only make coffee and no food items - it is truly dismal. Operations will be impacted," says a chain proprietor in Bengaluru.

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

Restaurant managers are scrambling to adapt. "Menus are being curtailed, some are cutting lunch service and operating solely in the evening," an industry representative says, adding that stoppages are fluctuating as supplies wax and wane. "A number of eateries in Delhi were shut yesterday - some have resumed operations. It's a fluid situation."

Retailers note a surge in sales of electronic cooking appliances, with some saying they are running out of them.

Official Position

Yet, the government states there is adequate supply.

India has more than 300 million home fuel subscribers and officials say cylinders are being prioritized to households as geopolitical strain from the regional hostilities affect energy markets.

Roughly 60% of India's LPG is brought in from overseas, and about 90% of those consignments pass through the Strait of Hormuz, the narrow Gulf chokepoint now effectively closed by the war.

The petroleum ministry says that it directed refineries to increase LPG output for home needs, raising domestic production by about 25%. Business-grade fuel is being allocated for vital industries such as healthcare and education, while distribution will be "fair and transparent".

"Some panic booking and stockpiling has been caused by false reports. The standard supply timeline 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 lengthy, winding line of scooters outside a gas outlet. "The panic is real," the caption reads.

An oil tanker at sea representing imports
India brings in up to a vast majority of the crude it requires, leaving it particularly vulnerable to problems in global supplies.

According to reports from market experts, concerns about India's broader fuel supplies may be overstated.

India imports almost all of its petroleum. Around 50% of its oil purchases - about millions of barrels a day - travel through the passage, largely from Middle Eastern nations.

Even if petroleum transit through the Strait of Hormuz are blocked, the deficit could be partly offset by higher imports of Russian petroleum, according to a sector expert.

Based on maritime intelligence and industry information, additional 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.

"Tens of millions of Russian oil barrels are currently on the water in the Indian Ocean and, with only two major Asian economies as major buyers, those barrels remain a viable alternative," an analyst noted.

Cooking Gas: The Critical Weakness

The key weakness is cooking gas, experts note.

India consumes roughly one million barrels a day, but produces only 40-45% domestically, importing the rest - 80–90% through Hormuz.

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

In short: "Oil import vulnerability can be somewhat alleviated through diversification. Refined product supply remains relatively comfortable. Kitchen fuel stocks is the key factor to monitor in the coming weeks."

What may be worsening the panic on the ground is not just limited availability but uneven distribution - and the usual problem of stockpiling.

An industry representative alleges exploitative practices.

"Retailers are taking advantage of 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 energy imports may be protected by worldwide shipping. But in restaurants across the country, the more pressing concern is simple: how to get the next cylinder.

Joseph Bennett
Joseph Bennett

A digital transformation strategist with over 12 years of experience in helping SMEs leverage technology for growth.