
As the Iran war entered its 12th day, its economic ripple effects have begun to reach India, with hotels and restaurants in several major cities shutting down their kitchens after commercial LPG supplies were abruptly curtailed.
Hospitality businesses in cities including Bengaluru, Mumbai, Chennai and Jaipur reported severe disruption as escalating geopolitical tensions affected shipping through the strategically vital Strait of Hormuz.
A conflict unfolding thousands of kilometres away in the Gulf is now directly affecting India's hospitality industry - particularly its kitchens.
Why India faces an LPG shortage
Supply disruptions through the Strait of Hormuz, triggered by the intensifying conflict involving Iran, Israel and the United States, have tightened LPG availability for India. The country imports nearly 62% of its annual LPG requirement of about 31.3 million tonnes, with a substantial portion transported through the narrow maritime chokepoint.
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The supply crunch has been compounded by developments in the Gulf region. Iraq has reportedly reduced production at its southern oilfields by around 70%, while Kuwait has declared force majeure, adding further pressure to already strained supplies.
As India grapples with new phase of energy crisis, here are rates of LPG cylinder across major cities:
| City | Domestic (14.2 Kg) | Commercial (19 Kg) |
|---|---|---|
| New Delhi | Rs 913.00 (+60.00) | Rs 1,884.50 (+144.00) |
| Kolkata | Rs 939.00 (+60.00) | Rs 1,988.50 (+144.00) |
| Mumbai | Rs 912.50 (+60.00) | Rs 1,836.00 (+144.00) |
| Chennai | Rs 928.50 (+60.00) | Rs 2,043.50 (+144.00) |
| Gurgaon | Rs 921.50 (+60.00) | Rs 1,901.50 (+144.00) |
| Noida | Rs 910.50 (+60.00) | Rs 1,884.50 (+144.00) |
| Bangalore | Rs 915.50 (+60.00) | Rs 1,958.00 (+144.00) |
| Bhubaneswar | Rs 939.00 (+60.00) | Rs 2,029.00 (+144.00) |
| Hyderabad | Rs 965.00 (+60.00) | Rs 2,105.50 (+144.00) |
| Jaipur | Rs 916.50 (+60.00) | Rs 1,913.00 (+144.00) |
| Lucknow | Rs 950.50 (+60.00) | Rs 2,007.00 (+144.00) |
| Patna | Rs 1,002.50 (+60.00) | Rs 2,133.50 (+144.00) |
| Thiruvananthapuram | Rs 922.00 (+60.00) | Rs 1,912.00 (+144.00) |
Government invokes emergency measures
In response to the situation, the Indian government on Tuesday invoked the Essential Commodities Act, giving priority to household LPG consumption over commercial usage.
Refineries have been instructed to operate at full capacity and divert additional production toward domestic cooking gas supplies. Authorities have also extended the LPG cylinder booking interval from 21 days to 25 days in an effort to prevent hoarding.
The government has additionally moved to ration natural gas, prioritising households receiving piped gas and vehicles that run on compressed natural gas (CNG).
Under the new framework, a four-tier allocation system has been introduced, reducing gas supplies to lower-priority sectors such as petrochemical plants, power stations and oil refineries to ensure essential demand is met.
Hospitality sector bears the brunt
Industry representatives say the hospitality sector has been among the hardest hit by the sudden supply restrictions.
The Bangalore Hotels Association warned that deliveries of commercial gas cylinders had effectively stopped.
"The supply of gas cylinders for commercial use has been stopped from today. Essential services such as senior citizens, students and hospitals depend on it. Immediate intervention from Union ministers is needed to restore commercial gas supplies," the association said.
Meanwhile, RK Gupta, national vice-president of the LPG Association of India, confirmed that commercial supplies had been restricted.
"The next booking will only be allowed after a 25-day interval to prevent hoarding, although oil companies insist there is no shortage," he said.
The situation highlights how the escalating Gulf conflict is beginning to disrupt global energy supply chains, with tangible consequences now being felt by businesses and consumers in India.
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