‘The Situation Is Dire’: War on Iran Tightens India’s Cooking‑Gas Supplies, Restaurants Warn

The ripple effects of a war nearly 3,000km away are now being felt in India’s kitchens.

US-Israeli strikes on Iran have disrupted energy shipments through the Strait of Hormuz, causing liquefied petroleum gas (LPG) supplies to tighten across India. The shortage is forcing restaurants to cut menus, reduce operating hours, and in some cases, close entirely.

Social media is flooded with videos showing long queues outside cooking-gas dealers in cities and towns across the country, as concerns over fuel supplies mount. Commercial LPG users—particularly restaurants—are bearing the brunt of the squeeze.

“The situation is dire. Cooking gas simply isn’t available,” said Manpreet Singh of the National Restaurant Association of India, which represents around 500,000 restaurants.

Most eateries rely on commercial LPG cylinders or piped gas, he explained, and the shortages are being felt nationwide. “Many restaurants have closed – some in Delhi, and many in the south. People are switching to coal, wood, and electric cookers just to keep kitchens running,” Singh added.

In Mumbai, media reports indicate that up to 20% of hotels and restaurants are already partially or fully closed due to tightening LPG supplies. In southern cities such as Bengaluru and Chennai, some eateries say their gas stocks have dwindled with little backup.

“We can only make coffee and nothing else – it is nothing short of pathetic. Businesses are going to suffer,” said Haroon Sait, who runs an artisan bakery and restaurant chain in Bengaluru.

'The situation is dire': War on Iran squeezes India's cooking-gas supplies

Restaurant operators across India are scrambling to cope with tightening LPG supplies.

“Menus are being shortened, some are cutting lunch service and opening only for dinner,” said Manpreet Singh of the National Restaurant Association of India, noting that closures are fluctuating as deliveries ebb and flow. “Three restaurants in Delhi were shut yesterday – two have already reopened. It’s a fluid situation.”

Retailers report a surge in demand for electric cookers, with some running out of stock.

Despite the disruption, the government insists there is no shortage. India has more than 300 million domestic LPG users, and officials say supplies are being redirected to households as tensions from the Gulf conflict ripple through energy markets.

Around 60% of India’s LPG is imported, and approximately 90% of those shipments pass through the Strait of Hormuz, the narrow Gulf chokepoint now heavily affected by the conflict.

The oil ministry said it ordered refineries on 8 March to maximise LPG output for households, boosting domestic production by about 25%. Non-domestic supply is being prioritised for essential sectors, including hospitals and schools, with distribution described as “fair and transparent.”

“Some panic booking and hoarding has been triggered by misinformation. The normal delivery cycle for domestic LPG remains about two-and-a-half days,” said Sujata Sharma, a senior petroleum ministry official.

The anxiety is now spreading beyond kitchens. On X, a viral video from Chennai shows a long queue of motorbikes outside a petrol station, with the caption: “The panic is real.”

'The situation is dire': War on Iran squeezes India's cooking-gas supplies

Concerns about India’s broader fuel supply may be overblown, according to data from maritime intelligence firm Kpler.

India imports around 90% of its oil, with roughly half of its crude shipments—2.5 to 2.7 million barrels per day—passing through the Strait of Hormuz, mainly from Iraq, Saudi Arabia, the UAE, and Kuwait.

Even if crude flows through the strait are disrupted, the shortfall could be partly offset by increased imports of discounted Russian crude, said Sumit Ritolia, refinery and oil markets analyst at Kpler.

Based on vessel tracking and market sources, Kpler estimates that incremental Russian crude imports in March could reach 1 to 1.2 million barrels per day, narrowing India’s effective exposure to Hormuz disruptions to about 1.6 million barrels per day.

“About 25-30 million barrels of Russian oil are currently floating in the Indian Ocean. With only India and China as major buyers, those barrels remain a ready fallback,” Ritolia said.

This supply flexibility has also caught the attention of Washington. US Ambassador to India Sergio Gor noted on X that India has been “a great partner in maintaining stable oil prices around the world,” highlighting the country’s continued purchases of Russian crude as part of that effort.

India is not only a major importer but also one of the world’s largest exporters of refined fuels. In 2025, its net exports of refined products averaged around 1.1 million barrels per day, and refiners have increasingly diversified crude sourcing from alternative suppliers, further reducing potential risks.

'The situation is dire': War on Iran squeezes India's cooking-gas supplies

“This means refined product supply for domestic demand remains comfortable, and there are currently no signs that India will struggle to meet internal consumption,” said Sumit Ritola, refinery and oil markets analyst at Kpler.

However, analysts warn that LPG is the real vulnerability.

India consumes roughly one million barrels of LPG per day, but produces only 40–45% domestically, importing the remainder—80–90% of it via the Strait of Hormuz.

Refineries can adjust operations to produce slightly more LPG, but even a 10–20% increase would lift domestic supply to just 47–50% of demand, leaving the country heavily dependent on imports, Ritola noted.

In his words: “Crude supply risks can be partially mitigated through diversification and Russian flows. Refined product supply is relatively comfortable. LPG availability is the real variable to monitor in the coming weeks.

On the ground, the anxiety is being intensified by patchy deliveries and hoarding.

Manpreet Singh, of the National Restaurant Association of India, accused some retailers of opportunistic profiteering, saying cylinders are being black-marketed and sold at inflated prices. “In one small town, I heard of cylinders being hoarded and auctioned off,” he said.

For now, India’s oil supply is cushioned by global trade flows. But in kitchens across the country, the more immediate concern remains: how to get the next cylinder.

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