Significant Decline in LPG Consumption in India Amid Global Tensions

Recent data indicates a significant decline in LPG consumption in India, attributed to international tensions affecting supply chains. In March 2026, LPG usage fell by 13% compared to the previous year, with the government prioritizing domestic needs by reducing commercial supplies. While domestic production has increased, experts warn that ongoing conflicts in the Middle East could challenge energy supply for import-dependent nations like India. Meanwhile, petrol and diesel demand has surged, highlighting the complexities of the current energy landscape. Read on to explore the implications of these trends and the government's response.

By Narendra Chaudhary Apr 19, 2026, 21:27 IST

LPG Consumption Trends in India

Recent statistics reveal a notable shift in the consumption of liquefied petroleum gas (LPG) in India, attributed to international circumstances. Data indicates that in March 2026, there was an approximate 13% year-on-year decline in LPG usage, closely linked to ongoing tensions in the Middle East and supply chain disruptions.

In March 2026, the total LPG consumption in the country was recorded at 2.379 million tons, down from 2.729 million tons during the same period last year. It is important to note that India imports around 60% of its LPG, with a significant portion arriving via the Strait of Hormuz. Recent conflicts have impacted this crucial maritime route, affecting gas supplies from major suppliers like Saudi Arabia and the United Arab Emirates.

To prioritize domestic needs, the central government has reduced LPG supplies for commercial and industrial purposes. According to the data, sales of domestic cylinders fell by 8.1%, totaling 2.219 million tons, while the decline in commercial usage was even steeper, particularly with wholesale sales plummeting by over 75%.

These figures contrast sharply with earlier statements claiming that LPG supply in the country was stable and domestic requirements were being met.

In response to this situation, the government has instructed refineries to decrease petrochemical production and increase LPG output. This strategy has yielded results, with domestic production rising to 1.4 million tons in March, compared to 1.1 million tons the previous year.

For the entire fiscal year 2025-26, total LPG production in the country reached 13.1 million tons, slightly up from around 12.8 million tons in the past two years. Additionally, there was a 6% increase in consumption throughout the year, bringing the total to 33.2 million tons, indicating a growing trend towards cleaner fuel in the country.

The ongoing global tensions have also impacted aviation fuel consumption. In March, the demand for aviation fuel remained relatively stable, attributed to airspace closures and reduced flights in several Gulf countries.

Conversely, there has been a surge in the demand for petrol and diesel. In March, petrol consumption rose by 7.6% to 3.78 million tons, while diesel consumption increased by 8.1% to 8.727 million tons.

Experts suggest that if tensions in the Middle East persist, energy supply could pose a significant challenge for import-dependent countries like India. However, the government's proactive measures are currently aimed at maintaining a balance in domestic needs.