India LPG Consumption Falls 13% To 2.37 Million Tonnes In March, West Asia Conflict Disrupts Supply Via Strait Of Hormuz
· Free Press Journal
New Delhi: India’s cooking gas (LPG) consumption saw a sharp fall of around 13 percent in March to 2.379 million tonnes, compared to 2.729 million tonnes in the same month last year. The drop was mainly due to supply disruptions caused by tensions in West Asia.
Supply Disruptions Hit Imports
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India depends on imports for nearly 60% of its LPG needs, much of which comes through the Strait of Hormuz. Due to conflict-related disruptions, supplies from key countries like Saudi Arabia and the UAE were affected.
LPG Companies Mull Plan To Cut Supply To 10 Kg Per Cylinder Amid Fuel CrisisTo manage the situation, the government reduced LPG supply to commercial users such as hotels and industries to ensure household demand was met.
Impact on Different Segments
Data from Petroleum Planning and Analysis Cell (PPAC) shows that domestic LPG consumption fell 8.1 percent to 2.219 million tonnes.
The impact was much higher on non-domestic users, where consumption dropped nearly 48 percent. Bulk LPG usage saw the steepest fall of over 75%, highlighting how industries and commercial establishments were hit the hardest.
LPG Supply Crunch Continues For Third Week, Govt Prioritises Households As Panic Bookings Ease From 87 Lakh PeakGovernment Steps to Boost Supply
To tackle the shortage, the government asked refineries to divert raw materials from petrochemicals to LPG production. This helped increase domestic LPG output to 1.4 million tonnes in March, up from 1.1 million tonnes a year ago.
For the full financial year 2025-26, LPG production rose to 13.1 million tonnes, compared to 12.8 million tonnes earlier.
Overall Demand Still Strong
Despite the March decline, total LPG consumption for the full year grew 6% percent to 33.212 million tonnes. Demand continues to rise due to government efforts to promote cleaner cooking fuel over traditional options like firewood.
LPG Allocation Raised To 50%, Govt Adds 20% More Supply As Panic Booking FallsOther Fuel Trends
The conflict also impacted aviation fuel demand. Air traffic disruptions kept ATF (jet fuel) consumption almost flat at 807,000 tonnes.
However, petrol and diesel demand remained strong. Petrol consumption rose 7.6 percent to 3.78 million tonnes, while diesel increased 8.1 percent to 8.727 million tonnes in March.
Industrial fuels like naphtha and fuel oil saw a decline, while bitumen demand for road construction increased slightly.