The heart of the crisis lies in the Strait of Hormuz. Following the outbreak of the US-Iran conflict in late February 2026, this critical waterway—through which nearly 20% of the world’s oil and LNG flows—has become a maritime no-go zone.
For countries like India, which imports over 60% of its LPG (with a staggering 90% of those imports originating from the Gulf), the impact was instantaneous. When QatarEnergy and other major suppliers issued force majeure notices in early March, the supply chain didn't just bend; it snapped.
Empty cylinders line the streets as distribution centers struggle to meet the surge in demand.
Domestic Rationing: The 25-Day Rule
To prevent a total collapse, governments have invoked emergency powers. In India, the Ministry of Petroleum has prioritized "Life over Luxury," diverting gas from petrochemical plants to household kitchens. However, this comes with a catch: The 25-Day Ration.
Mandatory Waiting Period: Domestic consumers are now restricted from booking a refill until 25 days after their last delivery.
Panic Buying: Despite government assurances, rumors of a total blackout have led to "cylinder hoarding," further depleting local stocks.
Price Hikes: Domestic prices have jumped by $5-$8 (₹500-₹700) per cylinder in a single week, hitting low-income families the hardest.
The Commercial Collapse: Restaurants Go Dark
While households are being "protected," the hospitality sector has been left out in the cold. Since March 5, 2026, the distribution of non-exempted commercial LPG has been virtually suspended in many metropolitan hubs.
"We aren't just cutting the menu; we're cutting the lights," says a restaurant owner in Mumbai. "Without high-pressure commercial burners, you can't run a professional kitchen. We’ve had to switch to induction for basic prep, but you can’t make a tandoori roti on an electric hotplate."
SectorImpact LevelCurrent StatusHouseholdsModerateRationed; 25-day wait period enforced.HospitalsLowPriority supply; exempted from cuts.RestaurantsCritical60% of outlets at risk of closure; supply halted.IndustryHighDiverted to domestic use; production slowed.
The "Electric" Escape: Is Induction the Answer?
As gas becomes scarce, the world is seeing a massive pivot toward Electric and Induction cooking. Sales of induction cooktops have surged by 300% in the last 48 hours. However, this shift isn't a silver bullet. The sudden load on the electrical grid is causing "micro-blackouts" in residential areas not designed for such high-amperage appliances.
Furthermore, for the millions living in rural areas or regions with unstable power, the cylinder remains the only lifeline.
What Happens Next?
The crisis is a wake-up call regarding the lack of Strategic LPG Reserves. Unlike crude oil, which is stored in massive underground salt caverns, LPG is difficult and expensive to stockpile.
As we move through March 2026, the focus remains on naval escorts for tankers (Operation Sankalp) and searching for alternative suppliers in the US and Africa. But until the tankers can safely pass through the Strait of Hormuz, the world will have to learn to cook with less.
