India's LPG Imports Halve Amid Domestic Output Decline
India's monthly LPG imports halve, domestic output falls
The Economic TimesImage: The Economic Times
India's monthly liquefied petroleum gas (LPG) imports have decreased by 50% in April compared to February, while domestic production has dropped by 10% from its March peak. The ongoing Iran conflict continues to disrupt energy flows, tightening overall supply and affecting cooking gas availability.
- 01LPG imports averaged 37,000 tonnes per day in early April, down from 73,000 tonnes in February.
- 02Domestic LPG output has fallen by 10% from its peak in March.
- 03The US has become the largest LPG supplier to India, providing 27% of total imports this month.
- 04Gulf countries previously supplied 54% of India's LPG consumption before the Iran war.
- 05Limited alternatives to Gulf producers are constraining supply and impacting market dynamics.
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India's liquefied petroleum gas (LPG) imports have halved in April compared to February, averaging 37,000 tonnes per day, down from 73,000 tonnes. Domestic output has also decreased by 10% from its March peak, tightening overall supply. This decline is attributed to ongoing disruptions in energy flows from the Gulf due to the Iran war, which has significantly affected cooking gas availability. The US has emerged as the largest supplier this month, delivering 142,000 tonnes, representing 27% of the total imports of 523,000 tonnes. Other contributors include the UAE, Saudi Arabia, Qatar, and Kuwait. Prior to the conflict, Gulf countries accounted for 54% of India's LPG consumption. The limited availability of alternatives outside Middle Eastern producers is expected to keep supply constrained, with industry analysts noting that most LPG volumes are locked in through annual contracts, leaving little on the spot market.
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The decline in LPG imports and domestic output may lead to higher cooking gas prices and potential shortages, affecting households reliant on LPG for cooking.
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