The escalating conflict in West Asia — involving US and Israeli strikes on Iran, followed by Iranian retaliation — has triggered a nationwide shortage of cooking gas (liquefied petroleum gas, or LPG) in India. The crisis, unfolding in March 2026, stems from severe disruptions to global energy supply chains, particularly through the Strait of Hormuz, a vital maritime chokepoint now effectively closed or heavily restricted due to security risks and attacks.
India, the world’s second-largest importer of LPG, consumes approximately 31-33 million metric tons annually. Around 60% of this demand is met through imports, with 85-90% of those imports originating from Middle Eastern suppliers such as Saudi Arabia, Qatar, the UAE, and Kuwait. The vast majority of these shipments transit the Strait of Hormuz, making India highly vulnerable to any blockage in this narrow Gulf passage.
The ongoing war has halted or delayed LPG cargoes, creating immediate supply tightness. While domestic production has been ramped up, the shortfall has hit hardest in the commercial sector, including restaurants, hotels, canteens, hostels, and street food vendors. Many establishments in major cities like Mumbai, Bengaluru, Chennai, Delhi, and others report acute shortages of commercial LPG cylinders. Operators have resorted to drastic measures: shortening operating hours, simplifying menus by eliminating fuel-intensive items (such as deep-fried foods, parottas, pizzas, and slow-cooked dishes), switching to induction cookers, coal/wood grills, or alternative fuels, and in some cases, temporarily closing. Industry groups, including the National Restaurant Association of India, have described the situation as “dire,” warning that 20-50% of affected businesses risk permanent closure without swift relief.
Households, which account for the bulk of LPG use (with over 330 million active domestic connections), face secondary pressures. Although the government has prioritized supplies for homes, hospitals, schools, and essential services — maintaining delivery cycles at around 2.5 days — panic buying, hoarding, and rumors have led to long queues at gas agencies in states including Uttar Pradesh, Maharashtra, Madhya Pradesh, and others. Domestic cylinder prices have risen modestly (by about ₹60), while commercial rates have increased more sharply.
The broader ripple effects include higher operational costs for small businesses, limited hot food options in hostels and cafeterias, and potential inflationary pressures on food prices. Some sectors, like laundries and gig economy food delivery, are also adapting amid uncertainty.
In response, the Indian government has invoked emergency measures under the LPG Control Order and Essential Commodities Act. Refineries have been directed to maximize LPG production (up by around 25-28% in recent days) and channel it exclusively to domestic use, CNG, piped gas, and priority sectors. Natural gas allocations have been revised to favor household LPG. Additional kerosene has been distributed as an alternative fuel in some states. Authorities are cracking down on black marketing and hoarding, expanding delivery authentication systems, and urging calm to prevent demand distortions.
Officials, including Prime Minister Narendra Modi and Petroleum Minister Hardeep Singh Puri, have repeatedly assured the public that household kitchens remain fully protected, with no actual shortage for domestic consumers. Efforts are underway to diversify imports from non-Hormuz sources such as the US, Norway, Russia, Canada, Algeria, and West Africa.
The situation remains dynamic. If the West Asia conflict de-escalates or alternative supply routes stabilize, relief could arrive quickly. However, the crisis underscores India’s longstanding energy security challenges: heavy reliance on imported fuels through vulnerable chokepoints like the Strait of Hormuz. This episode highlights the need for greater domestic production, strategic reserves, and import diversification to shield everyday essentials from distant geopolitical shocks.
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