LPG Consumption Drops Amid Supply Disruptions

The ongoing tensions in West Asia have disrupted fuel supply chains, significantly impacting LPG availability. In India, LPG consumption dropped by around 13 percent in March compared to last year. According to Petroleum Planning and Analysis Cell, usage declined from 2.729 million tonnes to 2.379 million tonnes. The heavy reliance on imports and the strategic importance of the Strait of Hormuz have contributed to this situation.

Domestic LPG cylinder sales fell by 8.1 percent, while commercial cylinder sales dropped by 48 percent and bulk LPG usage plunged by 75.5 percent. Meanwhile, petrol and diesel demand increased due to fears of shortages, with petrol consumption rising by 7.6 percent and diesel by 8.1 percent in March. The government has taken steps to boost LPG production, increasing output from 12.8 million tonnes to 13.1 million tonnes in the 2025–26 financial year.