India’s Restaurants Face Possible Closures as Iran War Triggers Cooking Gas Shortage

Restaurants and hotels across India are warning of potential shutdowns as supplies of cooking gas tighten amid disruptions caused by the US–Israel–Iran conflict. Industry groups said on Tuesday that the shortage of liquefied petroleum gas (LPG), widely used in commercial kitchens, could force many businesses to suspend operations if supplies do not improve.

The crisis follows the halt of shipping through the Strait of Hormuz and other Gulf routes after the conflict escalated, pushing up energy prices and limiting exports from major producers including Qatar and Saudi Arabia.

India, the world’s second-largest importer of LPG, relies heavily on overseas supplies, making its hospitality industry particularly vulnerable.

In response, India’s oil ministry has set up a panel to review requests from restaurants and other businesses seeking additional LPG allocations. Industry bodies, including the National Restaurant Association of India, warned the government that any prolonged disruption in commercial LPG supply could lead to widespread closures across the sector.

Restaurant operators say the situation is already critical. Some businesses report having only a few days’ worth of LPG left, forcing them to conserve gas or install alternative cooking systems such as induction stoves.

Bert Mueller, founder of California Burrito, said his chain has begun contingency measures as supplies tighten.

The impact is particularly visible in Bengaluru, where several restaurants say deliveries of gas cylinders have dropped sharply.

Industry representatives warn that many kitchens could stop operating within weeks if the shortage persists, while rising prices of cooking inputs such as sunflower oil are adding further pressure on the sector.