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

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

As military actions on Iran impede energy shipments through the Strait of Hormuz, availability of liquefied petroleum gas (LPG) are shrinking across India, compelling restaurants to cut menus, shorten hours and in some cases shut down altogether.

Social media is filled with video clips showing queues outside cooking-gas dealers across Indian cities and towns as worries over fuel supplies spread. Businesses appear the most affected: the most severe shortage is in food service establishments.

"The state of affairs is alarming. Cooking gas simply is unavailable," says a representative of the National Restaurant Association of India.

Most restaurants run either on industrial fuel canisters or piped gas, and the scarcities are now being noticed across the country. "A lot of restaurants have ceased operations - some in northern India, many in the southern region. People are switching to coal and wood and electric cookers to keep their operations going."

Regional Impact

In a western metro, local news say up to a 20% of eateries are already operating at reduced capacity as cylinder availability dwindle. In the southern cities of Bengaluru and Chennai, some eateries say their fuel reserves have shrunk with minimal reserves. "Coffee is the sole item we can prepare and nothing else - it is extremely difficult. Commerce will take a hit," says a business operator in Bengaluru.

Restaurant operators are seeking alternatives. "Menus are being curtailed, some are opening only for dinner and opening only for dinner," an industry representative says, adding that stoppages are varying as supplies wax and wane. "A number of eateries in Delhi were shut yesterday - some have resumed operations. It's a dynamic scenario."

Retailers observe a surge in sales of electric cookers, with some saying they are facing stockouts.

Official Position

Yet, the government states there is no shortage.

India has more than a vast number of home fuel subscribers and authorities say supplies are being reallocated to households as geopolitical strain from the regional hostilities impact energy markets.

Approximately six out of ten of India's LPG is brought in from overseas, and about 90% of those shipments pass through the critical waterway, the narrow Gulf chokepoint now significantly disrupted by the hostilities.

The petroleum ministry says that it ordered refineries to maximise LPG output for household consumption, enhancing domestic production by about a quarter. Business-grade fuel is being prioritised for critical services such as healthcare and education, while distribution will be "fair and transparent".

"A degree of anxious stocking and stockpiling has been triggered by misinformation. The normal delivery cycle for household cylinders remains about under three days," says a ministry representative.

Widening Concern

Now the worry is moving beyond kitchens. On digital platforms, a widely shared video from Chennai shows a extended procession of two-wheelers outside a petrol pump. "Anxiety is palpable," the text reads.

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

India imports 90% of its petroleum. Around a significant portion of its petroleum shipments - about 2.5-2.7 million barrels a day - travel through the waterway, largely from regional suppliers.

Even if oil shipments through the Strait of Hormuz are disrupted, the gap could be partly made up by higher imports of Russian petroleum, according to a refinery and oil markets analyst.

Based on maritime intelligence and credible market sources, increased 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.

"Around 25-30 million 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 available backup," an analyst noted.

Cooking Gas: The Critical Weakness

The key weakness is LPG, experts note.

India consumes roughly one million barrels a day, but produces only less than half domestically, importing the rest - most of it through the Strait.

Refineries can adjust processes to produce a bit more LPG, but even a moderate increase would only lift domestic supply to about under half of demand, leaving the country largely dependent on imports.

In short: "Oil import vulnerability can be partially mitigated through diversification. Refined product supply remains relatively comfortable. LPG availability is the critical issue to watch in the coming weeks."

What may be worsening the anxiety on the ground is not just limited availability but erratic supply chains - and the familiar spectre of stockpiling.

An industry representative claims exploitative practices.

"Suppliers 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 hoarded and sold at a premium."

For now, India's oil supplies may be cushioned by worldwide shipping. But in restaurants across the country, the more urgent issue is simple: how to get the next cylinder.