LPG consumption slumps 17% in March on war-related shortages

Cooking gas LPG consumption in India fell by a steep 17.7% in the first half of March on the back of supply disruptions due to war in West Asia, preliminary industry data showed.

LPG consumption fell to 1.147 million tonne during the first fortnight of March, 17.3% lower than 1.387 million tonne consumed in the same period last year and 26.3% lower than 1.557 million tonne demand in the first half of February.

India imports about 60% of its LPG requirements, much of it via the Strait of Hormuz, which has been effectively shut following U.S. 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.

Preliminary sales data of three State-owned fuel retailers, who control roughly 90% of the market, showed LPG consumption during March 1 to March 15 was 16% lower than the demand in the same period of 2024 and 10.6% lower than March 1-15, 2023.

LPG consumption has grown at a steady 3–4% annually in recent years, driven by government efforts to replace firewood and other polluting fuels.

With the war leading to airspace closure in many Gulf countries and suspension of flights, jet fuel or ATF consumption fell 4% to 327,900 tonnes in the first fortnight of March when compared with the same period last year. It was down 12.3% month-on-month.

Other than the two war-impacted fuels, petrol and diesel sales posted a handsome rise in demand. Petrol sales were up 13.2% to almost 1.5 million tonne while diesel consumption rose 8.2% to 3.384 million tonne. Month-on-month, petrol consumption was up 11.2% and diesel sales rose 7.7%.