Disrupted Gulf energy routes are choking off LPG flows to South Asia, leaving roadside stalls, canteens, and hotels scrambling for cylinders and wondering how long they can survive
India, Pakistan, Bangladesh, and other countries in the South Asian region facing signs of a possible liquefied petroleum gas (LPG) shortage as the conflict in the Middle East hits vital energy supply chains.
Prahalad Singh, 48, who runs a roadside eatery in Saket area of New Delhi, anxiously scrolls through updates on his phone about LPG shortages hitting food businesses across several states in India. The disruption is the consequence of the ongoing war against Iran triggered by US-Israeli strikes – a war that has rattled the global energy supply chains and led to uncertainty across oil and gas markets.
“This is going to hit all of us,” says Singh, who sells Chinese food from a small roadside stall and is now counting how long his remaining gas supply will last. He says the cylinder he is currently using may only last another three days.
“I am already worried if I will be able to get another one on time. Our livelihood is at stake,” Singh says.
Across India, similar concerns are emerging from canteens, restaurants and hotels who depend heavily on commercial LPG cylinders to run their kitchens. Energy supply disruptions have already pushed up LPG prices in India, with the government recently increasing the cost of household cylinders by about 60 Indian rupees ($0.65) and commercial cylinders by roughly 115 rupees ($1.25).
In the southern state of Telangana, vegetables, including carrots, cauliflower, onions, and cheese, sit chopped on a restaurant counter at Biryani House, but the kitchen has fallen silent. The eatery’s owner says a severe shortage of LPG cylinders has forced them to halt daytime operations.
The restaurant normally requires about ten commercial cylinders to operate each week smoothly, but the owner says only two have been delivered so far. With supply tightening, the crisis appears to be worsening with each passing day.
“This place is crowded during peak hours, but we have now closed operations for the daytime and will open briefly in the evening. This is the month of Ramadan, and this would be a peak work time. We are very worried,” said Aleem Ahmad, adding that roadside eateries and other food outlets would be severely hit.
For many small restaurants in Telangana, Ahmad says that Ramadan is usually one of the busiest seasons of the year, with families and workers stepping out in the evenings for iftar meals. However, the ongoing shortage of cooking gas threatens to reduce business during what should have been a peak earning period.
In a statement, the Bangalore Hotels Association said that the supply of commercial LPG cylinders had been stopped, which has put the hotel industry in a very difficult situation.
“As hotels are considered an essential service, many people — including senior citizens, students, and others who depend on us for daily meals — will be affected. Oil companies had earlier assured there would be no disruption in gas supply for 70 days, so this sudden stoppage is a major blow. We urge the Union government to intervene immediately, restore commercial gas supplies, and support the hotel industry,” the Association said.
Reports of shortages of commercial LPG cylinders have already surfaced from major cities such as Delhi, Mumbai, Punjab, UP, and Bengaluru, with several restaurants and catering businesses saying it has become increasingly difficult to operate.
Common citizen feels the pinch
In the outskirts of Delhi NCR, 45-year-old Sandhya Pal carefully manages her gas supply connection in her cloud kitchen as she runs a small tiffin service that delivers home-cooked meals to office workers and students.
“I have also changed my menu and kept only quickly cooked items available for a week. I am just anxious that the supply should last long and there should be no disruption in the service,” Sandhya says, adding that she is anxious about being able to serve her clients. “I am praying that the war should end soon. It is disrupting ordinary lives.”
Across several Indian cities, there is chaos as people queue up to refill LPG cylinders amid fears that prices could rise further. In parts of Uttar Pradesh, residents say uncertainty over future supplies has prompted many households to secure extra cylinders.
“There is a lot of uncertainty. We fear that prices might further go up,” said Pawan Kumar, who works in a textile shop as a salesperson, and waited in a queue for hours to secure a gas cylinder for his home.
The ripple effects of the global energy disruption are also beginning to show up in domestic fuel prices in India. Observers say the increase reflects the broader rise in global energy prices and the uncertainty surrounding supplies in the Middle East, which remain under pressure.
“The higher fuel and cooking gas costs could soon mean more expensive restaurant meals, street food, catering services, and transport, and may gradually push up the prices of packaged food, vegetables, and delivery services as businesses pass on rising expenses. The hike will strain household budgets. If gas prices keep rising, food prices will inevitably go up,” said Aftab Ahmad, 33, a restaurant owner in New Delhi.
A quick response
The government has sought to reassure the public and businesses that adequate supplies remain available. Responding to the growing concern, the Indian Ministry of Petroleum and Natural Gas said that it had begun taking steps to stabilize supplies and prioritize essential consumption.
According to the ministry, directions have been issued to oil refineries to increase LPG production in light of disruptions affecting fuel supply chains. Authorities are also directing additional production towards domestic cooking gas to ensure that households continue to receive uninterrupted supplies.
The ministry has said it is giving priority to domestic LPG supplies for households and has introduced a 25‑day gap between bookings to prevent hoarding and black marketing. LPG from imports for non‑domestic use is being directed first to essential sectors such as hospitals and educational institutions. For other non‑domestic users, including restaurants, hotels and industries, a committee of three executive directors from the oil marketing companies has been set up to review requests for LPG supply.
On Tuesday, the Indian government also invoked provisions of the Essential Commodities Act, which allows authorities to regulate production, supply, and pricing of key goods in order to prevent hoarding, black marketing, and artificial shortages during crises.
“Obviously, when there is a war situation in the Middle East, it is bound to affect several countries that import LPG and petroleum products. At the moment, we have adequate stocks, as assured by the Petroleum Minister and the External Affairs Minister on the floor of the House, said Ashok Chavan, a parliamentarian from the ruling BJP government. “So I think things will remain quite normal for the next two to three months. We also expect the war situation to stabilize soon through peace efforts by various countries.”
Worries of energy shortage in the Global South grow every day as shipments are struggling to path through the Strait of Hormuz. The narrow passage is one of the world’s most important energy corridors and is used by several Gulf producers to transport oil and liquefied gas to Asian markets.
India is among the largest consumers of LPG in the world at more than 33 million tonnes of cooking gas each year. A large share of this supply comes through imports, making the country vulnerable to global supply shocks and geopolitical instability.
Analysts warns that the disruption in the shipping lanes could also affect other countries that rely heavily on imported energy, including Bangladesh, Pakistan and Sri Lanka.
In Bangladesh, the authorities this week have introduced emergency measures and ordered the temporary closure of universities and colleges in an effort to reduce power consumption. Several state-run fertilizer plants have suspended operations due to a lack of gas.
On Monday, the Bangladeshi government instructed public and private universities in the country to shut, with Eid al‑Fitr holidays brought forward to conserve electricity and fuel during a severe energy crisis. The emergency step is intended to ease pressure on the power grid and reduce fuel use for transport amid global supply uncertainties.
“The Iran-Israel war has created an energy crisis in Bangladesh. As a result, public transport problems and an oil and gas crisis have arisen,” Dhaka resident Monirul Islam told RT. Alongside the shutdown of educational institutions, the government has ordered public and private offices to cut electricity use, including reducing lighting and air-conditioning by half. “We are hopeful that this war will end soon, and we will be free from this crisis,” another local resident, Sanjida Akter, said.
In Sri Lanka, which is still recovering from its 2022 economic collapse, the government has reintroduced fuel rationing measures and declared “power-saving holidays” for government offices.
In Pakistan, the Iran war-related energy supply disruptions have exacerbated the existing severe economic crisis, characterized by high inflation, severe foreign exchange shortages, and heavy debt, requiring multiple bailouts from the IMF. On Monday, Prime Minister Shehbaz Sharif announced steep measures to cut down on energy consumption, including a four-day workweek for government offices, temporary closures of schools and universities, and a 50%reduction in fuel use by official vehicles.
Petrol and diesel prices in Pakistan have also been raised by roughly 20% as the government urges citizens not to stockpile fuel.
For millions across South Asia, the geopolitical conflict unfolding thousands of kilometers away is beginning to have a direct impact on their homes.
“This will not only affect the food and hospitality industry but thousands of gig workers across India who are on the verge of losing their livelihoods if this situation continues,” says Sadhya, fearing for her cloud kitchen, which she started a year ago. “The entire situation is scary and uncertain.”