economy
March 10, 2026
India's restaurants are under threat from the LPG supply crunch caused by the Iran war
Restaurants in India are facing closure as the government restricts the supply of LPG as cooking fuel, industry representatives tell CNBC.
TL;DR
- The Iran war is disrupting global LPG supply, threatening India's imports.
- India's government is prioritizing LPG for 330 million households over 3 million businesses.
- Restaurant industry representatives warn of widespread closures and job losses due to LPG shortages.
- 90% of Indian restaurants use LPG cylinders, and the industry faces already low demand and high costs.
- India imports roughly 67% of its LPG, with 90% of imports transiting through the Strait of Hormuz.
- The restaurant industry is urging the government to classify it as an essential service.
- Distributors have been asked to halt LPG supply to restaurants and hotels.
- LPG supply is politically sensitive in India, linked to a subsidized fuel scheme for poorer households.
- Five Indian states are due to hold elections in early 2026, making cooking gas prices a debated issue.
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