🔗 Share this article ‘An Alarming State of Affairs’: War on Iran Tightens India's LPG Availability. People queue up to buy fuel canisters for domestic use in a major Indian city. The repercussions of a war being fought nearly 3,000km away are now impacting India's homes. As US-Israeli strikes on Iran impede energy deliveries through the key maritime chokepoint, supplies of cooking gas are tightening across India, compelling restaurants to cut menus, close earlier and in some cases close completely. Social media is filled with video clips showing crowds outside fuel suppliers across Indian cities and towns as concerns over fuel supplies spread. Businesses appear the most affected: the biggest crunch is in food service establishments. "Conditions are critical. Cooking gas simply is unavailable," says a spokesperson of the National Restaurant Association of India. Most eateries run either on industrial fuel canisters or pipeline-supplied fuel, and the shortages are now being noticed across the country. "Many restaurants have shut down - some in Delhi, many in the south. People are adopting traditional burners and electronic appliances to keep their operations going." Regional Impact In a western metro, accounts say up to a significant portion of hospitality businesses are already completely or partially closed as business fuel stocks dry up. In the southern cities of Bengaluru and Chennai, some restaurants say their fuel reserves have depleted with little backup. "Our menu is reduced to coffee and nothing else - it is extremely difficult. Commerce will take a hit," says a restaurant owner in Bengaluru. A food joint in a southern city which has ceased operations due to a scarcity of cooking gas. Restaurant managers are seeking alternatives. "Food options are being cut, some are skipping midday meals and opening only for dinner," an industry representative says, adding that closures are varying as supplies wax and wane. "Several establishments in Delhi were shut yesterday - two have already reopened. It's a fluid situation." Retailers report a increase in sales of induction stoves, with some saying they are facing stockouts. Authority's View Yet, the government maintains there is sufficient stock. India has more than 300 million home fuel subscribers and spokespersons say cylinders are being prioritized to households as tensions from the regional hostilities affect energy markets. About a majority of India's LPG is imported, and about nine out of ten of those shipments pass through the critical waterway, the narrow Gulf chokepoint now significantly disrupted by the hostilities. The petroleum ministry says that it instructed refineries to increase LPG output for domestic use, 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". "Unnecessary hoarding and stockpiling has been caused by rumors. The normal delivery cycle for domestic LPG remains about under three days," says a senior official. Widening Concern Now the anxiety is moving beyond kitchens. On social media, a widely shared video from Chennai shows a extended procession of scooters outside a petrol pump. "Anxiety is palpable," the text reads. India brings in up to 90% of the crude it requires, leaving it highly exposed to problems in international markets. According to analysis from market experts, concerns about India's broader fuel supplies may be overstated. India imports 90% of its crude oil. Around 50% of its crude oil imports - about millions of barrels a day - travel through the strait, largely from regional suppliers. Even if petroleum transit through the Strait of Hormuz are disrupted, the deficit 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, additional Russian crude imports could reach around 1-1.2 million barrels a day, narrowing India's effective gap from exposure to the Strait of Hormuz to about 1.6 million barrels a day. "A large quantity 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 viable alternative," an analyst noted. Kitchen Fuel: The Primary Concern The key weakness is cooking gas, analysts say. 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 tweak operations to squeeze out a bit more LPG, but even a limited rise would only increase domestic supply to about 47-50% of demand, leaving the country largely dependent on imports. In short: "Crude supply risk can be partially mitigated through diversification. Processed petroleum stocks remains fairly adequate. LPG availability is the key factor to watch in the coming weeks." What may be worsening the anxiety on the ground is not just limited availability but patchy deliveries - and the usual problem of hoarding. An industry representative states exploitative practices. "Distributors are taking advantage of the situation - black-marketing cylinders and selling them at a high cost. In one small town, I heard of cylinders being stockpiled and sold to the highest bidder." For now, India's oil supplies may be cushioned by global trade flows. But in homes across the country, the more pressing concern is simple: how to get the next refill.
People queue up to buy fuel canisters for domestic use in a major Indian city. The repercussions of a war being fought nearly 3,000km away are now impacting India's homes. As US-Israeli strikes on Iran impede energy deliveries through the key maritime chokepoint, supplies of cooking gas are tightening across India, compelling restaurants to cut menus, close earlier and in some cases close completely. Social media is filled with video clips showing crowds outside fuel suppliers across Indian cities and towns as concerns over fuel supplies spread. Businesses appear the most affected: the biggest crunch is in food service establishments. "Conditions are critical. Cooking gas simply is unavailable," says a spokesperson of the National Restaurant Association of India. Most eateries run either on industrial fuel canisters or pipeline-supplied fuel, and the shortages are now being noticed across the country. "Many restaurants have shut down - some in Delhi, many in the south. People are adopting traditional burners and electronic appliances to keep their operations going." Regional Impact In a western metro, accounts say up to a significant portion of hospitality businesses are already completely or partially closed as business fuel stocks dry up. In the southern cities of Bengaluru and Chennai, some restaurants say their fuel reserves have depleted with little backup. "Our menu is reduced to coffee and nothing else - it is extremely difficult. Commerce will take a hit," says a restaurant owner in Bengaluru. A food joint in a southern city which has ceased operations due to a scarcity of cooking gas. Restaurant managers are seeking alternatives. "Food options are being cut, some are skipping midday meals and opening only for dinner," an industry representative says, adding that closures are varying as supplies wax and wane. "Several establishments in Delhi were shut yesterday - two have already reopened. It's a fluid situation." Retailers report a increase in sales of induction stoves, with some saying they are facing stockouts. Authority's View Yet, the government maintains there is sufficient stock. India has more than 300 million home fuel subscribers and spokespersons say cylinders are being prioritized to households as tensions from the regional hostilities affect energy markets. About a majority of India's LPG is imported, and about nine out of ten of those shipments pass through the critical waterway, the narrow Gulf chokepoint now significantly disrupted by the hostilities. The petroleum ministry says that it instructed refineries to increase LPG output for domestic use, 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". "Unnecessary hoarding and stockpiling has been caused by rumors. The normal delivery cycle for domestic LPG remains about under three days," says a senior official. Widening Concern Now the anxiety is moving beyond kitchens. On social media, a widely shared video from Chennai shows a extended procession of scooters outside a petrol pump. "Anxiety is palpable," the text reads. India brings in up to 90% of the crude it requires, leaving it highly exposed to problems in international markets. According to analysis from market experts, concerns about India's broader fuel supplies may be overstated. India imports 90% of its crude oil. Around 50% of its crude oil imports - about millions of barrels a day - travel through the strait, largely from regional suppliers. Even if petroleum transit through the Strait of Hormuz are disrupted, the deficit 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, additional Russian crude imports could reach around 1-1.2 million barrels a day, narrowing India's effective gap from exposure to the Strait of Hormuz to about 1.6 million barrels a day. "A large quantity 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 viable alternative," an analyst noted. Kitchen Fuel: The Primary Concern The key weakness is cooking gas, analysts say. 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 tweak operations to squeeze out a bit more LPG, but even a limited rise would only increase domestic supply to about 47-50% of demand, leaving the country largely dependent on imports. In short: "Crude supply risk can be partially mitigated through diversification. Processed petroleum stocks remains fairly adequate. LPG availability is the key factor to watch in the coming weeks." What may be worsening the anxiety on the ground is not just limited availability but patchy deliveries - and the usual problem of hoarding. An industry representative states exploitative practices. "Distributors are taking advantage of the situation - black-marketing cylinders and selling them at a high cost. In one small town, I heard of cylinders being stockpiled and sold to the highest bidder." For now, India's oil supplies may be cushioned by global trade flows. But in homes across the country, the more pressing concern is simple: how to get the next refill.