India’s LPG Crisis: Impact of Iran War and Strait of Hormuz Disruption on the Country –

Anand Kumar
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Anand Kumar
Anand Kumar
Senior Journalist Editor
Anand Kumar is a Senior Journalist at Global India Broadcast News, covering national affairs, education, and digital media. He focuses on fact-based reporting and in-depth analysis...
- Senior Journalist Editor
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India's LPG Crisis: Impact of the Iran War and Strait of Hormuz Disruption at the Country Level

NEW DELHI: Fears of an LPG shortage are starting to spread across the country as the escalating conflict in the Middle East disrupts global energy supply chains. The closure of the Strait of Hormuz in the wake of Iranian retaliation against US-Israeli strikes has led to panic buying, long queues at LPG agencies and petrol pumps, and forced restaurants and small businesses to turn to alternative cooking methods.While the Center has maintained that domestic LPG supply remains adequate, disruptions in commercial cylinder distribution and reports of shortages have created concern across multiple states.

Panic buying, long queues in West Bengal

Scenes of long queues outside LPG agencies and fuel stations were reported from many parts of the country as consumers rushed to secure cooking gas and fuel.In Kolkata and several districts in West Bengal, autorickshaw drivers and local consumers were seen waiting for hours at LPG distribution stations and gas agencies.

Some drivers said they had been waiting since the night before to refill their cylinders.Many consumers also visited distribution offices directly after online booking systems crashed due to heavy traffic.“This is panic buying,” Bijan Biswas, spokesperson of the Indian LPG Distributors Association in Bengal, told PTI. He added: “Many people fear that they may not get another cylinder soon, which is what led to this crisis.”

Daily bookings of Indane LPG gas cylinders in the state have almost doubled to around 2 lakh from around 1 lakh earlier, distributors said.

Restaurants are turning into alternatives in Bhopal

A reported shortage of commercial LPG cylinders has started affecting hotels and restaurants in Bhopal, forcing many operators to resort to alternative cooking methods like induction stoves. Some institutions were also forced to temporarily stop operations due to fuel shortages.Residents are also feeling the disconnect, with long queues reported outside several gas agencies across the city, as households rush to secure home LPG cylinders.In light of the shortage, major fast food chains operating in the city have turned to induction cooking to keep their kitchens running.While some restaurants have moved to induction systems, others have turned to traditional firewood to continue food preparation while waiting for gas supplies to return to normal.Dulraj Gir, a restaurant owner in Bhopal, said businesses are trying to adapt. “We are not alone facing the problem of shortage of commercial cylinders, but the entire nation. We are trying to make it work through induction cooking,” he told ANI.“We have already shifted 60% of our work to routing, and the remaining 10-20% will be resolved within two days once we get the training. We will ensure that at least 80% of the food items, if not all, are prepared,” he added.

He had to switch to firewood in Hyderabad

In Hyderabad, Nadeem Qadri, a restaurant owner, said that many restaurants had to switch to using firewood.“Today, due to gas shortage, we are cooking on firewood. Almost all hotels in Telangana have closed due to gas shortage,” he told ANI.“There is a severe gas shortage happening on the black market, and along with gas, wood has also become expensive.”

Hit Tamil Nadu Restaurants

The hospitality sector was particularly affected in Tamil Nadu.

The Tamil Nadu Hotels Association said thousands of small and medium-sized restaurants were affected as commercial LPG supplies continued to be interrupted.Many restaurants in Chennai have stopped serving fuel-intensive dishes like dosa and fried rice to conserve gas.In several neighborhoods, restaurants raised signs announcing their temporary closure due to the lack of commercial cylinders.The crisis also extended to the transportation sector, especially gas-powered rickshaws.

Nearly a quarter of Chennai’s vehicle fleet remained off the roads as drivers spent hours waiting at the limited number of operational LPG dispensing stations. Companies still operating have reportedly raised prices to compensate for long waits to refuel.

Panic buying at petrol stations in Puducherry

Rumors of shortages also sparked panic buying at gasoline stations in parts of the country. In Puducherry, motorcyclists and car owners queued at gas stations despite government assurances that supplies of petrol and diesel remained normal.“As rumors spread that there was a shortage of petrol and diesel in the wake of the Middle East war, vehicle owners, out of panic, went straight to buy fuel,” a petrol dealer told PTI.“We have sufficient stock and truck drivers were bringing fuel as usual. There is no need for any panic and I would just like to appeal to vehicle owners not to fall prey to unfounded rumors that there will be a fuel shortage,” he added.

High demand for agitation in New Delhi

Sales of electric cooking appliances such as induction stoves and kettles have surged across New Delhi as households look for alternatives amid concerns over disruption in LPG supplies.Croma, owned by the Tata group, said demand for induction cooktops has jumped significantly in recent days.“At Croma, we have noticed a sharp and immediate spike in demand for induction cooktops over the last few days. Our average daily run rate has gone up significantly,” Infiniti Retail Ltd (Croma) CEO and Managing Director Shibashish Royrrold told PTI.Although he did not reveal the exact numbers, Roy added: “Our average daily operating rate has risen to almost three times the usual levels.”He also pointed to a shift in consumer behaviour. “Interestingly, we are also seeing customers purchasing multiple units at a time, something that was not common earlier, indicating some precautionary buying.”

Online platforms are witnessing a huge rise in Mumbai and Bengaluru

Online marketplaces are seeing a sharp rise in demand. “Over the last two days, sales of induction cooktops have increased by 30x, while rice cookers and electric pressure cookers are seeing a 4x increase,” said an Amazon India spokesperson.

Air fryers and multi-use kettles are also seeing a two-fold increase in sales during a typical day.”“Customers are using Amazon Now to get similar products within minutes in parts of Delhi-NCR, Mumbai and Bengaluru,” the spokesperson added.

Power generation in Karnataka may be affected

Meanwhile, the impact of fuel shortages may also extend to the energy sector. Power generation in Karnataka may face disruption after the Center prioritized natural gas allocation to critical sectors amid nationwide supply constraints linked to the conflict in the Middle East.Under the revised prioritization, domestic consumption was placed at the top, followed by sectors such as transportation and fertilisers, while power generation was given the lowest priority.The Gas Authority of India Limited has completely stopped gas supply to the Yelahanka gas-fired power plant with effect from March 12 at 6:00 am.The 370 MW facility, operated by the Karnataka Power Corporation Limited, is the only gas-fired power plant in the state and mainly supplies electricity to Bengaluru.Officials said that the station has been operating continuously since December last year to meet the peak demand for electricity in the city.Karnataka’s daily power demand is currently around 355 million units, which is met through thermal and hydro plants, renewable sources such as solar and wind, and power from the central grid.However, continued gas supply disruptions may lead to minor EMD issues Power supplies if the range of alternative sources is not expanded.

Panic buying in Uttar Pradesh

Meanwhile, panic buying triggered by rumors of price hikes led to chaotic scenes in parts of Uttar Pradesh. Long queues were reported outside the Mahajori gas agency in Basti district early Thursday morning as consumers rushed to collect cylinders.Local residents said many people started lining up as early as 4am.When the dealership opened its doors at 7 a.m., a large crowd rushed inside to collect cylinders, and many consumers were seen carrying them on their heads and shoulders, creating stampede-like conditions.However, district supply officer Vimal Kumar Shukla said there was no shortage of LPG cylinders in the area and urged residents not to panic.

The government intervenes

The Union government has invoked the Essential Commodities Act to prioritize LPG supplies to households and essential services such as hospitals and educational institutions.Domestic LPG production also rose by about 25%, with production directed entirely towards home consumption.Meanwhile, countries have been asked to monitor supply chains and crack down on hoarding and black marketing.Union Home Minister Govind Mohan earlier chaired a meeting with state officials and directed authorities to ensure adequate supply of LPG and prevent illegal diversion of cylinders. The authorities urged consumers not to panic or indulge in hoarding products.

Bihar to check black marketing of fuel

People queued up outside cooking gas agencies in several districts in Bihar, including Patna, Kaimur, Motihari and Darbhanga, to buy LPG cylinders, as rumors of supply shortages sparked panic buying. Distributors said a large number of customers attended amid fears of a possible shortage.Sanghamitra Mukherjee, assistant director of the Eastern India Hotel and Restaurant Association, said the organization had written to the central government to highlight the impact of disruption in LPG supply on restaurants.“We have to wait and watch for some time. The association has sent a letter to the concerned ministry in the central government, but we are yet to receive a response,” she told PTI.Meanwhile, Bihar Deputy Chief Minister Samrat Chaudhary on Wednesday said that the Center and the state government are making efforts to ensure adequate supply of LPG cylinders to people.Amid nationwide restrictions in cooking gas supplies in view of the Middle East crisis, he asserted that the Bihar government is taking measures to check black marketing of the fuel.

Opposition reaction

Amid growing concerns over disruption in power supply, Congress leader Rahul Gandhi criticized the Centre’s preparedness and warned of risks to India’s energy security.“The flawed foreign policy has created this problem. Now, what we have to do is prepare. You have some time. The government and the prime minister must immediately start preparations, otherwise millions of people will suffer huge losses,” he said.Speaking to reporters in the Parliament complex, Rahul said the Prime Minister must ensure that people are protected and India’s energy security is safeguarded.“It is a bigger issue than Iran allowing oil and not allowing oil,” he said. “This war is fundamentally about the current world order… We are going through an unstable time. When you go through an unstable time, you have to change your mentality. You cannot have the same mentality.”He added, “I am not making any political statement. I am just saying that I see a big problem coming, and if it is solved at the level of Iran, this problem also will not disappear because the world is changing, its structure is changing, and we must change our mentality.”Meanwhile, MK Stalin, Chief Minister of Tamil Nadu, wrote to the Center on March 11 seeking urgent intervention to stabilize the fuel supply chain that has been disrupted by tensions in the Middle East.In West Bengal, Chief Minister Mamata Banerjee directed oil marketing companies to restore LPG booking servers immediately and give priority to households whose cylinders have run out or are about to run out.The state government has also asked companies to ensure uninterrupted supply of LPG to hospitals, ICDS centres, mid-day meal kitchens, hostels and small restaurants, and to continue partial supply where complete delivery is not possible.

Why did the crisis appear now?

India consumes about 31.3 million tons of liquefied petroleum gas annually, about 87% of which is used by families and the rest for commercial institutions such as restaurants.About 62% of the country’s LPG demand is met through imports. With the Strait of Hormuz, a major shipping route for oil and gas, disrupted by the ongoing conflict, global energy supplies have come under pressure.India imports approximately 85-90% of its LPG from Middle Eastern countries like Saudi Arabia and Qatar via this route. While the government maintains that domestic cooking gas supplies remain safe, the outage has already begun to impact commercial distribution of LPG and raises fears of a wider energy crisis across the country.

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Anand Kumar
Senior Journalist Editor
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Anand Kumar is a Senior Journalist at Global India Broadcast News, covering national affairs, education, and digital media. He focuses on fact-based reporting and in-depth analysis of current events.
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