Restaurants and food outlets have shut down in India due to a shortage of cooking gas caused by the war in Iran.
Almost 90 per cent of India's liquefied petroleum gas imports pass through the Strait of Hormuz – the blockaded shipping lane now at the centre of the conflict.
Millions of Indian consumers are growing increasingly worried as disruptions ripple across the country, with the US-Israel-Iran conflict affecting global energy flows.
India consumes about 31 million tonnes of LPG a year, about 60 per cent of which is imported, including from the UAE. The fuel is used daily by hundreds of millions of households in the world’s most populous nation and the shortage highlights India’s vulnerability to geopolitical shocks in the Gulf.
Affordability and availability are a challenge for many households, and a supply shortfall could become a political hot-button issue.
Restaurant owners say tightening LPG supplies have already begun to disrupt operations, with scores of eateries temporarily shutting down, reducing capacity or increasing prices.
“Our production required 10 to 12 cylinders a day, and now we are using induction plates and running at only about 50 per cent capacity,” said Siddharth, who runs the well-known Ladu Samrat restaurant in Mumbai.
Once a modest shop for mill workers, Ladu Samrat now sells about 10,000 vada pavs – a potato-patty sandwich popular across the megacity – every day.
Last week it shut for a day before reopening with a curtailed menu, and switching to wood-fire and induction cookers. Siddarth said the alternatives are far more expensive and difficult to sustain.
“Coal is banned in Mumbai, but authorities are allowing it for now, and we are somehow running the show,” he said. The restaurant had to buy new equipment for induction plates, further increasing costs.
Industry groups warn the situation could worsen if supplies remain unstable. Most restaurants do not hold more than one or two days of LPG in reserve, said Amit Bagga, the Delhi head of the National Restaurant Association of India.
“If the situation is not addressed promptly, it could lead to closures, affecting the livelihoods of restaurant workers and impacting those who depend on restaurants for their meals,” said Mr Bagga, the co-founder of Daryaganj Restaurants.
Similar concerns were echoed by Madhukar M Shetty, vice president of the Karnataka State Hotels Association. Nearly 30 per cent of establishments in the state have shut ahead of the busy wedding season, with smaller businesses struggling to switch to alternative cooking methods.
“Commercial consumption is only about 17 per cent, so we are asking the government to provide at least half the cylinders,” he said.
Balancing act
The disruption has highlighted India’s diplomatic balancing act in a volatile global energy landscape, as the country relies heavily on imported fuel.
India previously faced tension with Washington for buying discounted Russian oil, with US officials accusing it of helping fund Moscow’s war in Ukraine. President Donald Trump imposed punitive tariffs last year that forced New Delhi to halt imports.
But the latest conflict has again placed India in a difficult geopolitical position, with opposition parties accusing Prime Minister Narendra Modi’s government of compromising the country’s foreign policy under pressure from Washington.
Critics say New Delhi has largely refrained from commenting on the US-Israel strikes on Iran, including the assassination of Iranian supreme leader Ayatollah Ali Khamenei, to avoid antagonising Mr Trump or Israel.
Opposition leaders say the approach undermines India’s long-standing tradition of non-alignment in global conflicts. “A flawed foreign policy has created this problem,” said Rahul Gandhi, India’s main opposition leader.
Mr Modi spoke to Iranian President Masoud Pezeshkian over the weekend – his first contact with Tehran since the conflict began – to discuss what he called the “serious situation” in the region.
As Iran limits traffic through the strait while offering safe passage to vessels from certain countries, conflicting statements have emerged in New Delhi over passage for Indian ships, triggering panic buying and eight million LPG refill bookings over the weekend.
Long queues formed at LPG distribution agencies in Delhi, with police posted in parts of Old Delhi after crowds gathered amid fears of shortages.
“We booked a cylinder last week but did not receive it, forcing us to visit the distribution centre, but the crowds were overwhelming,” said Sunita, a domestic helper in South Delhi who has switched to cooking with an expensive induction plate.
The sudden disruption in supply and surge in demand have also fuelled a black market, with reports of cylinders being sold for up to 6,500 rupees ($70) – nearly six times the official price of about 1,000 rupees ($11).
The government last week invoked the Essential Commodities Act to regulate gas supplies and curb hoarding, black marketing, and artificial shortages.
Officials say domestic LPG production has been increased by about 25 per cent while two vessels carrying about 92,700 metric tonnes of LPG are en route to India, offering some relief.
