India's LPG Consumption Drops 13% in March Due to West Asia Conflict
Domestic LPG consumption drops 13% in March amid West Asia conflict
Business Standard
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India's liquefied petroleum gas (LPG) consumption fell by 13% in March, reaching 2.379 million tonnes, largely due to supply disruptions caused by the ongoing conflict in West Asia. The government has implemented measures to prioritize household gas availability amid declining imports and production challenges.
- 01LPG consumption decreased by 13% in March compared to the previous year.
- 02Household LPG sales fell by 8.1%, while non-domestic sales dropped by nearly 48%.
- 03The government has diverted petrochemical feedstock to increase LPG production.
- 04Despite the drop in March, overall LPG consumption for the fiscal year increased by 6%.
- 05Petrol and diesel sales saw significant growth, with petrol up 7.6% and diesel up 8.1%.
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India's LPG consumption experienced a significant decline of 13% in March, amounting to 2.379 million tonnes, compared to 2.729 million tonnes in March of the previous year. This drop is attributed to supply disruptions linked to the ongoing conflict in West Asia, particularly affecting imports through the Strait of Hormuz. The Indian government, which imports about 60% of its LPG, has cut supplies to commercial users to ensure availability for households. Domestic LPG sales to households fell by 8.1% to 2.219 million tonnes, while sales to non-domestic users plummeted by nearly 48%. In response to the crisis, the government has directed refineries to increase LPG production by diverting feedstock from petrochemical production, resulting in an increase from 1.1 million tonnes to 1.4 million tonnes in March compared to the previous year. Overall, LPG consumption for the fiscal year ending March 2026 is projected to rise by 6%, reaching 33.212 million tonnes.
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The decline in LPG availability may lead to increased prices for consumers and potential shortages in household supplies, affecting cooking gas access for families.
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