Middle East tensions threatens 500,000 Indian restaurants as LPG supplies dwindle

INDIA – The ongoing Middle East conflict has triggered a severe cooking gas crisis across India, threatening to shutter hundreds of thousands of restaurants as the government prioritizes household supplies amid disrupted shipments through the Strait of Hormuz.

India, the world’s second-largest LPG importer, relies on the strategic waterway for approximately 90% of its cooking gas imports, with current stocks estimated to last only two to three weeks.

A “Catastrophic” Situation Unfolds

The National Restaurant Association of India, representing over 500,000 restaurants nationwide, warned that 90% of its members depend on commercial LPG for daily operations.

Association president Sagar Daryani described the potential disruption as leading to “closure of business and job losses” across an industry generating US$78.9 billion annually and employing more than 8 million people.

The Federation of Hotel & Restaurant Associations of India has similarly sought government intervention, with Goa chapter president Pralhad Sukhtankar reporting that “distributors have switched off their phones and some restaurants have already closed down.”

Kitchens Scramble for Alternatives

Restaurants across major cities are implementing desperate measures.

California Burrito founder Bert Mueller told Reuters his 100-plus locations have only two days of LPG stock, installing induction stoves while conserving remaining gas.

Bengaluru’s iconic Vidyarthi Bhavan has reduced its cooking tawas to stretch supplies, with managing partner Arun Adiga explaining that each dosa requires significant flame.

Mumbai’s Veranda restaurant has nearly halted Pan-Asian dishes, as induction cannot replicate high-flame cooking. Oudh 1590 and Chowman chains are pivoting to coal-based tandoor items, though electric ovens prove inefficient for most dishes.

Government Response and Industry Demands

India’s Ministry of Petroleum and Natural Gas directed oil refineries to prioritize LPG for 330 million households over 3 million commercial users, extending the refill booking cycle to 25 days to prevent hoarding.

The ministry announced a committee to review representations from restaurants and other industries.

The NRAI is urging the government to classify the restaurant industry as an essential service, warning that without intervention, widespread closures are imminent.

Vulnerable Supply Chain Exposed

India imports roughly 67% of its LPG requirements, with about 90% transiting through the Strait of Hormuz, according to Rystad Energy senior vice president Manish Sejwal.

The country consumed 31.3 million metric tons of LPG in fiscal 2025, meeting only 41% from domestic sources. With no strategic LPG reserves and limited storage capacity, the hospitality sector faces an uncertain future as the conflict shows no signs of abating.

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