India’s cooking gas consumption saw a sharp decline in March, with LPG usage falling 13 per cent year-on-year due to supply disruptions linked to the ongoing Middle East conflict, according to official data.LPG consumption stood at 2.379 million tonnes in March, down from 2.729 million tonnes in the same month last year. The decline comes as disruptions in the Strait of Hormuz, a key route for India’s fuel imports, impacted supplies from major exporters like Saudi Arabia and the UAE.
Household supply prioritised, commercial usage hit hard
To manage shortages, the government curtailed LPG supply to commercial establishments such as hotels and industries, prioritising household consumption. According to the news agency PTI, LPG sales to domestic users fell by 8.1 per cent to 2.219 million tonnes.The impact was far more severe on non-domestic segments. LPG sales to commercial users dropped nearly 48 per cent, while bulk LPG consumption plunged by a massive 75.5 per cent.The data from the Petroleum Planning and Analysis Cell (PPAC) contrasts with government claims that household demand was being fully met.
Domestic production boosted to offset imports
With India importing around 60 per cent of its LPG needs, the disruption forced authorities to ramp up domestic output. Refineries were directed to divert feedstock from petrochemical production to LPG manufacturing.As a result, LPG production rose to 1.4 million tonnes in March from 1.1 million tonnes a year earlier, reported PTI. For the full 2025-26 fiscal, production increased to 13.1 million tonnes, compared to 12.8 million tonnes in the previous two years.Despite the March dip, overall LPG consumption for the fiscal year rose 6 per cent to 33.212 million tonnes, reflecting steady long-term growth driven by cleaner fuel adoption.
Mixed trends across fuel consumption
The conflict also impacted aviation fuel demand, with jet fuel (ATF) consumption remaining almost flat at 807,000 tonnes in March due to airspace restrictions in Gulf countries.However, petrol and diesel demand remained strong. Petrol consumption rose 7.6 per cent to 3.78 million tonnes, while diesel usage increased 8.1 per cent to 8.727 million tonnes, as per PTI.Among industrial fuels, naphtha consumption declined 9.9 per cent and fuel oil fell 1.4 per cent, while bitumen demand rose 3 per cent during the fiscal year, indicating continued activity in road construction.