Full Breakdown
India Faces Cooking Gas Shortage Amid Iran Conflict
3/12/2026, 11:18:11 AM
Overview of the Crisis
India is experiencing a significant shortage of liquefied petroleum gas (LPG), primarily affecting the hospitality sector, as a direct consequence of the ongoing conflict involving Iran. The disruption in shipping through the Strait of Hormuz due to the U.S.-Israel war on Iran has led to soaring energy prices and increased transport costs, severely impacting LPG supplies from major Gulf producers like Qatar and Saudi Arabia. As the world's second-largest importer of LPG, India has invoked emergency powers to compel refiners to boost production, yet many restaurants and hotels are struggling to secure adequate supplies.
Impact on the Hospitality Sector
The National Restaurant Association of India (NRAI) has warned that the crisis could lead to widespread disruptions and potential shutdowns across the hospitality industry. Many establishments are being forced to alter their menus, reduce operating hours, or even suspend operations altogether. For instance, Bert Mueller, founder of California Burrito, noted that his chain has only two days' worth of LPG stock and is implementing contingency measures, including the installation of induction stoves at select locations.
Reports indicate that some restaurants have already begun to cut back on menu items that require extensive cooking, with many opting for simpler dishes that consume less gas. Anjan Chatterjee, managing director of Speciality Restaurants, expressed concerns about the feasibility of switching entirely to electric cooking methods, stating, “Given the sort of cuisine we make, it’s not possible to switch to induction cooking for all our menu.”
Official Responses and Industry Concerns
In response to the crisis, India's oil ministry has established a panel to review requests from affected industries, including restaurants, seeking access to LPG supplies. The NRAI has emphasized the critical nature of LPG for restaurant operations, warning that any disruption could lead to catastrophic closures. The association has advised its members to implement limited crisis menus that prioritize dishes requiring lower gas usage.
The situation has escalated to the point where Indian companies have raised LPG prices for the first time in a year, with commercial cylinders becoming approximately 30% more expensive. This price hike, coupled with supply disruptions, poses a severe challenge to the industry, which has not fully recovered from the impacts of the COVID-19 pandemic.
Conflicting Reports & Gaps
While many reports indicate a severe shortage of LPG, there are discrepancies regarding the extent of the crisis. Some sources suggest that larger establishments may have sufficient reserves for a week or two, while smaller restaurants are facing immediate shortages. The NRAI has highlighted that most kitchens do not stockpile LPG due to safety concerns, relying instead on frequent deliveries, which are now severely impacted.
Verbatim Quotes
- “We have LPG stock for two days. We are working on contingencies,” — Bert Mueller, Founder, California Burrito
- “It's a very grave situation. Most of the (gas) companies have stopped supplying,” — Ananth Narayan, NRAI Bengaluru Branch
- “If the situation doesn’t improve within two days, nearly 50% hotels and restaurants in Mumbai may be forced to temporarily shut down.” — Pradeep Shetty, HRA (WI) Spokesperson
- “As gas supply is critical to the operation of the hospitality sector, we urge the government to treat our industry as an essential service and ensure supplies without disruption,” — Chander K Baljee, Chairman, Royal Orchid Hotels
The ongoing LPG shortage in India underscores the vulnerabilities of the hospitality sector to geopolitical conflicts and highlights the urgent need for government intervention to stabilize supplies.
