Haroon Sait’s Kitchen Closures Signal India’s LPG Emergency

As the US-Israeli strikes on Iran disrupt energy shipments through the Strait of Hormuz, supplies of liquefied petroleum gas (LPG) are tightening across India. This geopolitical conflict is forcing restaurants to cut menus, shorten hours and in some cases shut down altogether. Most eateries run either on commercial LPG cylinders or piped gas, and the shortages are now being felt across the country. The situation has escalated to a point where people are switching to coal and wood and electric cookers to keep kitchens going.

Restaurant Operators Scramble for Survival

In Mumbai, media reports say up to a fifth of hotels and restaurants are already fully or partly shut as commercial LPG supplies tighten. In the southern cities of Bengaluru and Chennai, some eateries say their gas stocks have dwindled with little backup. Haroon Sait, who runs an artisan bakery and restaurant chain in Bengaluru, says businesses are going to suffer significantly. He notes that they can only make coffee and nothing else, calling the situation nothing less than pathetic.

Restaurant operators are scrambling to adapt to these fluid conditions. Singh reports that menus are being curtailed, with some cutting lunch service and opening only for dinner. Closures are fluctuating as supplies ebb and flow. According to Singh, three restaurants in Delhi were shut yesterday, while two have already reopened. It is a fluid situation where businesses face constant uncertainty regarding their operational capacity.

Supply Chain Vulnerabilities and Government Response

India has more than 300 million domestic LPG users and officials say supplies are being redirected to households as tensions from the war in the Gulf ripple through energy markets. Roughly 60% of India's LPG is imported, and about 90% of those shipments pass through the Strait of Hormuz, the narrow Gulf chokepoint now effectively closed by the conflict. The oil ministry says that it ordered refineries on 8 March to maximise LPG output for household consumption, lifting domestic production by about 25%. Non-domestic supply is being prioritised for essential sectors such as hospitals and educational institutions, while distribution will be fair and transparent.

Some panic booking and hoarding has been triggered by misinformation. Sujata Sharma, a senior official in the petroleum ministry, states that the normal delivery cycle for domestic LPG remains about two-and-a-half days. Now the anxiety is spreading beyond kitchens. On X, a widely shared video from Chennai shows a long, snaking queue of motorbikes outside a petrol pump. The panic is real according to the caption.

Geopolitical Offsets and Strategic Imports

India imports 90% of its oil. Around half of its crude oil imports - about 2.5-2.7 million barrels a day - travel through the strait, largely from Iraq, Saudi Arabia, the United Arab Emirates and Kuwait. Even if crude flows through the Strait of Hormuz are disrupted, the gap could be partly offset by higher imports of discounted Russian crude, according to Sumit Ritolia, a refinery and oil markets analyst at Kpler.

Based on vessel tracking and credible market sources, Kpler says incremental Russian crude imports in March could reach around 1-1.2 million barrels a day, narrowing India's effective shortfall from exposure to the Strait of Hormuz to about 1.6 million barrels a day. Around 25-30 million Russian oil barrels are currently floating on ships in the Indian Ocean and, with only India and China as major buyers, those barrels remain a ready fallback. That flexibility has not gone unnoticed in Washington. US Ambassador to India Sergio Gor said in a post on X that India had been a great partner in maintaining stable oil prices around the world, adding that the US recognises the country's continued purchases of Russian crude as part of that effort.

India is also one of the world's largest exporters of refined fuels. In 2025, its net exports of refined products averaged about 1.1 million barrels a day, and refiners have increasingly diversified crude sourcing from alternative suppliers. Refineries can tweak operations to squeeze out a bit more LPG, but even a 10-20% boost would only lift domestic supply to about 47-50% of demand, leaving the country heavily reliant on imports, according to Ritola.

Key Takeaways

• Supply Disruption: US-Israeli strikes on Iran have disrupted energy shipments through the Strait of Hormuz, causing LPG shortages.
• Restaurant Impact: Up to one-fifth of hotels in Mumbai are shut; businesses in Bengaluru report dwindling stocks.
• Import Reliance: Roughly 60% of India's LPG is imported, with 90% of shipments passing through the Strait of Hormuz.
• Russian Offset: Incremental Russian crude imports could reach 1-1.2 million barrels a day to offset shortfalls.
• US Stance: US Ambassador Sergio Gor acknowledges India’s role in maintaining stable oil prices via Russian crude purchases.

Summary

The conflict has created a fluid situation where closures fluctuate as supplies ebb and flow. While domestic production increased by 25% following ministry orders, the country remains heavily reliant on imports. Even with alternative sourcing and export capabilities, the vulnerability to chokepoints like the Strait of Hormuz persists, leaving millions of users dependent on stable geopolitical conditions.