New Delhi: 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 the latest official data.
Liquefied Petroleum Gas consumption was at 2.379 million tonnes in March, 12.8 per cent lower than 2.729 million tonnes 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 cylinders sold to domestic households fell 8.1 per cent in March to 2.219 million tonnes, while those sold to non-domestic users were down almost 48 per cent. Bulk LPG sales were 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 tonnes in March from 1.1 million tonnes a year ago, 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 tonnes from 12.8 million tonnes output in the previous two financial years.
Despite March being an exception, LPG consumption in the fiscal year ending March 2026 was 6 per cent up to 33.212 million tonnes.
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 closures in many Gulf countries and flight suspensions, jet fuel or ATF consumption was almost flat at 807,000 tonnes in March, compared with 801,000 tonnes 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 tonnes while diesel consumption rose 8.1 per cent to 8.727 million tonnes.
For the full fiscal, ATF sales were up 2 per cent to 9.161 million tonnes while petrol consumption rose 6.5 per cent to 42.586 million tonnes. Diesel consumption was higher by 3.6 per cent to 94.705 million tonnes.
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 tonnes in 2025-26.
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