LPG Consumption in India Faces Steep Decline Amid Supply Disruptions

Due to the ongoing conflict in West Asia, LPG consumption in India saw a significant drop of 17.7% in the first half of March. Supply disruptions have primarily affected imports through the Strait of Hormuz, prompting India to curtail commercial LPG supply to ensure household availability.

LPG consumption in India has witnessed a staggering decline of 17.7% in the first half of March, industry data reveals. The dip is attributed to supply disruptions caused by ongoing conflict in West Asia, impacting the vital import routes like the Strait of Hormuz.

India, which imports about 60% of its LPG, has faced significant disruptions following geopolitical tensions involving US and Israeli strikes on Iran. As a result, the government has prioritized household LPG usage, cutting supplies to commercial entities such as hotels and industries.

While LPG and jet fuel demand decreased, petrol and diesel have seen an uptick. Petrol sales increased by 13.2%, and diesel consumption saw an 8.2% rise year-on-year, reflecting shifting consumer behaviors amid regional instability.