State-run oil companies’ LPG sales fell 17% in the first half of March as supplies to commercial customers decelerated sharply amid the widespread logistical bottlenecks triggered by the Iran war. Petrol and diesel sales, however, surged as supply remained unaffected and consumers rushed to fuel up amid fears of shortages.
A sharp cut in supply to commercial customers led to a decline in LPG consumption in March, said Sujata Sharma, joint secretary in the oil ministry.
With consignments from the Gulf severely disrupted due to the war, the government prioritised households for gas supply, curtailing those to commercial and industrial customers. The Gulf accounts for about 90% of India’s LPG imports.
The supply of LPG is a “matter of concern” and there is a need to “conserve, ” said Sharma, highlighting that households are being regularly supplied cylinders. Cooking gas sales tend to increase every month, given an expanding customer base and a growing economy.
During April-February FY26, LPG sales, including those by private firms, rose 7.9%.
Sales of aviation turbine fuel (ATF) by state-run oil companies — Indian Oil, Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL) — fell 4% in the first half of March from a year ago, as flights to the war-hit Gulf were affected. Growth in ATF sales by both state and private firms stood at 2.1% during April-February.
State oil companies’ petrol sales accelerated 13% and diesel 8.2% year-on-year in the first 15 days of March. By comparison, sales — including those of private firms — rose 6.3% for petrol and 3.2% on-year for diesel during April-February.
State firms control about 90% of the domestic petrol, diesel and ATF market.
Sharma emphasised that there is ample crude supply and that refineries are operating at high capacities.
Prior to the war, domestic LPG output met around 40% of consumption. To offset the supply disruptions from West Asia, India has ramped up domestic production, currently 38% higher than the pre-war levels.
Two LPG carriers that crossed the Strait of Hormuz early Saturday have arrived in India, carrying volumes equivalent to about one day of national consumption. Government officials said six ships loaded with the gas are stuck in the Persian Gulf, and a dialogue with Iran is underway to bring them to India.
A sharp cut in supply to commercial customers led to a decline in LPG consumption in March, said Sujata Sharma, joint secretary in the oil ministry.
With consignments from the Gulf severely disrupted due to the war, the government prioritised households for gas supply, curtailing those to commercial and industrial customers. The Gulf accounts for about 90% of India’s LPG imports.
The supply of LPG is a “matter of concern” and there is a need to “conserve, ” said Sharma, highlighting that households are being regularly supplied cylinders. Cooking gas sales tend to increase every month, given an expanding customer base and a growing economy.
During April-February FY26, LPG sales, including those by private firms, rose 7.9%.
Sales of aviation turbine fuel (ATF) by state-run oil companies — Indian Oil, Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL) — fell 4% in the first half of March from a year ago, as flights to the war-hit Gulf were affected. Growth in ATF sales by both state and private firms stood at 2.1% during April-February.
State oil companies’ petrol sales accelerated 13% and diesel 8.2% year-on-year in the first 15 days of March. By comparison, sales — including those of private firms — rose 6.3% for petrol and 3.2% on-year for diesel during April-February.
State firms control about 90% of the domestic petrol, diesel and ATF market.
Sharma emphasised that there is ample crude supply and that refineries are operating at high capacities.
Prior to the war, domestic LPG output met around 40% of consumption. To offset the supply disruptions from West Asia, India has ramped up domestic production, currently 38% higher than the pre-war levels.
Two LPG carriers that crossed the Strait of Hormuz early Saturday have arrived in India, carrying volumes equivalent to about one day of national consumption. Government officials said six ships loaded with the gas are stuck in the Persian Gulf, and a dialogue with Iran is underway to bring them to India.
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