India LPG consumption slides 13% amid West Asia conflict

India's cooking gas LPG consumption fell by a steep 13 per cent in March as supply disruptions linked to the West Asia conflict hit availability for both household kitchens and commercial users, according to latest official data.

LPG consumption was at 2.379 million tonne in March, 12.8 per cent lower than 2.729 million tonne consumed in the same period last year.

India imports about 60 per cent of its LPG requirements, much of it via the Strait of Hormuz, which was effectively shut following US and Israeli strikes on Iran and Tehran's retaliation. With supplies from Saudi Arabia and the United Arab Emirates disrupted, the government has cut LPG supplies to commercial establishments like hotels, and industries to safeguard household cooking gas availability.

According to the Oil Ministry's Petroleum Planning and Analysis Cell (PPAC), LPG cylinder sold to domestic households fell 8.1 per cent in March to 2.219 million tonne while those sold to non-domestic users was down almost 48 per cent. Bulk LPG sales was down by a massive 75.5 per cent.

The PPAC data showed lower consumption when compared to government claims of LPG supplies being normal and all demand from domestic users being met.

To offset the shortfall, the government directed refineries to divert feedstock from petrochemical production to boost LPG output. This led to domestic LPG production rising to 1.4 million tonne in March from 1.1 million tonne a year back, according to data from PPAC.

This push led to LPG production in the full 2025-26 fiscal (April 2025 to March 2026) rising to 13.1 million tonne from 12.8 million tonne output in the previous two financial years.

Despite March being an exception, LPG consumption in the fiscal ended March 2026 was 6 per cent up to 33.212 million tonne.

LPG consumption has grown at a steady pace in recent years, driven by government efforts to replace firewood and other polluting fuels with cleaner alternatives.

With the war leading to airspace closure in many Gulf countries and suspension of flights, jet fuel or ATF consumption witnessed almost flat growth at 807,000 tonne in March when compared with sale of 801,000 tonne a year ago.

Other than the two war-impacted fuels, petrol and diesel sales posted a handsome rise in demand. Petrol sales were up 7.6 per cent to 3.78 million tonne while diesel consumption rose 8.1 per cent to 8.727 million tonne.

For the full fiscal, ATF sales were up 2 per cent to 9.161 million tonne while petrol consumption rose 6.5 per cent to 42.586 million tonne. Diesel consumption was higher by 3.6 per cent to 94.705 million tonne.

Industrial fuels naphtha and fuel oil posted a loss of 9.9 per cent and 1.4 per cent, respectively while bitumen used for road making saw a 3 per cent rise in consumption to 8.84 million tonne in 2025-26