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India LPG Crisis: Iran War Triggers Fuel Shortages

Bloomberg Markets •
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Gas dealer Vishal Vilas Mandhare stares at the snaking queue outside his shop in Pune, which served just 20 people a day before the Iran war. Carrying empty cylinders, clients pepper him and his staff with questions about the looming shortages of India's cooking fuel of choice. LPG dealers across the country report similar scenes as supply chains buckle under geopolitical pressure.

The queues outside Mandhare's shop represent a dramatic shift from normal operations. Before the Iran conflict, his business handled a manageable flow of customers throughout the day. Now, the same shop faces overwhelming demand as fears of shortages drive panic buying. The disruption highlights how regional conflicts can cascade into everyday life thousands of miles away.

For millions of Indian households, LPG cylinders are essential for cooking, making the supply crisis more than just an inconvenience. The situation underscores India's vulnerability to energy market volatility, particularly given its heavy reliance on imports. As the queues grow longer and supplies tighten, the economic ripple effects could extend beyond just cooking fuel to broader inflation and household budgets.