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India's LPG Shortage Cripples Restaurants and Homes

Financial Times Markets •
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A war‑driven cut in Iranian oil exports has slashed India's supply of liquefied petroleum gas, leaving the nation— which imports roughly 90% of its overseas LPG— scrambling for fuel. Restaurants in Mumbai and Puducherry report half‑size dosas and halted bread lines as gas cylinders run dry, forcing kitchens onto induction plates or charcoal for diners this week.

The government has responded with commercial rationing and orders from the United States, yet reserves remain thin. Households, which consume 85‑90% of India's LPG, now queue for cylinders while e‑commerce sites sell out of induction cookers. Small vendors and chai‑sellers switch to diesel or shut down, tightening urban labor markets and pressure rental prices as landlords raise fees amid scarcity.

Prime Minister Narendra Modi labeled the crunch “worrisome” in parliament, while oil minister Hardeep Singh Puri urged calm. Analysts at Bernstein warned that repeated energy shocks—from Russian oil to the Iran conflict—make electrification a necessity, not a choice. The immediate impact is a sharp dip in food‑service output and consumer spending across metros and tier‑two cities, tightening profit margins for chains and independent eateries alike.