New Delhi, India — April 19, 2026
India’s liquefied petroleum gas (LPG) consumption declined sharply in March, falling 13% year-on-year as geopolitical tensions in the Middle East disrupted critical supply routes, according to official data.
The country’s LPG usage dropped to 2.379 million tonnes in March, compared to 2.729 million tonnes in the same period last year. The decline highlights the vulnerability of India’s energy supply chain, particularly its heavy dependence on imports.
Supply Disruptions via Key Energy Route
A significant portion of India’s LPG imports passes through the strategically vital Strait of Hormuz, which has been impacted by ongoing tensions in West Asia.
India imports nearly 60% of its LPG requirements, with major shipments sourced from countries such as Saudi Arabia and the United Arab Emirates. Supply disruptions from these exporters have led to a tightening of availability in the domestic market.
Commercial and Bulk Demand See Steep Fall
The impact has been most severe in the non-domestic segment.
- Commercial LPG consumption, including usage by hotels and industries, saw a sharp decline of nearly 48%.
- Bulk LPG sales dropped by more than 75%, reflecting reduced supply allocation.
To prioritize household consumption, authorities scaled back supplies to commercial users, ensuring that essential domestic cooking gas needs remained largely unaffected.
Household Consumption Also Slips
Even domestic LPG consumption recorded a decline, falling 8.1% to 2.219 million tonnes in March. While supply to households remained stable, reduced availability and market adjustments contributed to lower overall usage.
Government Measures to Stabilize Supply
To counter supply disruptions, the government directed refiners to increase LPG output by reducing petrochemical production. As a result, domestic LPG production rose significantly to 1.4 million tonnes, up from 1.1 million tonnes a year earlier.
Officials have maintained that household supply remained stable despite global disruptions, signaling a prioritization strategy to shield consumers from volatility.
Long-Term Demand Remains Strong
Despite the short-term decline, India’s overall LPG demand continues to grow.
- Total LPG consumption for the financial year increased by 6%, reaching 33.212 million tonnes.
- Demand in the transport sector also remained strong, with petrol and diesel sales showing steady growth.
- Aviation turbine fuel (ATF) consumption remained largely unchanged.
Broader Energy Impact
The data underscores how geopolitical tensions in the Middle East can directly affect India’s energy security. With a heavy reliance on imports and key maritime routes, disruptions can quickly translate into supply constraints and demand fluctuations.
Experts warn that continued instability in the region could further impact LPG availability and pricing in the coming months.
