India's liquefied petroleum gas supply chain is experiencing severe disruptions as military conflicts in the Middle East involving Iran continue to escalate. The household fuel shortage is spreading shockwaves across the restaurant industry and daily life for ordinary citizens.
According to the South China Morning Post and other foreign media outlets on the 18th (local time), gas distribution centers across India are seeing extreme chaos as citizens rush to secure fuel. In some regions, people have been lining up as early as 3 a.m., with police being called to resolve conflicts over queue positions.
Daily life disruptions have already exceeded tolerable limits. Residents in the southern state of Kerala have resorted to cooking with firewood as gas delivery reservations become nearly impossible. Some households have entered an effective "emergency mode," rationing their remaining gas supplies.
Crimes exploiting the supply shortage are also surging. Commercial gas cylinders have been stolen in broad daylight, while black market prices have soared to several times normal levels. Supply instability is escalating beyond mere inconvenience into social unrest.
The restaurant industry is taking a direct hit. According to the Indian Restaurant Association, approximately 5% of all restaurants have already suspended operations. Those still operating have begun scaling back by removing gas-intensive menu items such as fried rice and noodles. In some regions, more than 20% of hotels and restaurants have reportedly closed temporarily.
90% Middle East Dependency Exposes India's Energy Vulnerability
The core cause of this crisis is India's high dependence on the Middle East. India relies on the region for more than 90% of its LPG supply, with a significant portion of imports passing through the Strait of Hormuz. However, the effective blockade of these waters has caused serious disruptions to energy supplies.
Demand for electric alternatives is also surging. Sales of electric induction cooktops and other alternative cooking appliances have increased by dozens of times compared to normal levels. Major retailers are struggling to maintain inventory. Some households are preemptively switching to electric cooking appliances in anticipation of continued supply instability.
The Indian government has attempted to calm concerns by stating that supply chains remain stable, but market anxiety shows no signs of easing. Experts warn that if the Middle East energy crisis persists, additional shocks to food supply and overall prices will be inevitable.
Given India's high LPG dependency, gas shortages are proving more critical than crude oil disruptions. Analysts suggest that even if refiners adjust production to increase some supply, it will be insufficient to meet total demand.