India’s LPG Consumption Drops 16% in April Amid West Asia Supply Disruptions

India’s fuel consumption trends in April reflected the impact of global geopolitical developments, with cooking gas demand witnessing a sharp decline while other fuels showed mixed movement, as per the PTI report. 

Sharp Decline in LPG Consumption 

Cooking gas consumption dropped significantly during the month, with total LPG usage falling to 2.2 million tonnes in April.  

This represents a 16.16% decline compared to 2.62 million tonnes recorded in the same period last year. The figure was also 10.5% lower than the 2.45 million tonnes reported in April 2024. 

On a sequential basis, consumption declined from 2.379 million tonnes in March, indicating continued pressure on supply and demand conditions.  

The contraction in April was steeper than the 12.8% year-on-year decline observed in March, highlighting the intensification of disruptions. 

Supply Constraints and Policy Response 

The decline has been linked to supply disruptions arising from the West Asia conflict, which affected shipments through the Strait of Hormuz.  

India depends on imports for around 60% of its LPG requirements, with a significant share sourced from countries such as Saudi Arabia and the United Arab Emirates. 

To manage limited availability, supplies to commercial users including hotels and industrial consumers were curtailed.  

At the same time, priority was given to household cooking gas needs. Distribution to domestic consumers was also regulated by increasing the interval between successive refills. 

This shift comes after several years of steady growth in LPG consumption, driven by government initiatives aimed at replacing traditional fuels such as firewood with cleaner alternatives. 

Impact on Other Fuel Segments 

Jet fuel consumption also reflected the effects of the conflict. Aviation turbine fuel (ATF) demand declined 1.37% year-on-year to 761,000 tonnes in April, down from 807,000 tonnes in March. The drop was attributed to airspace closures and flight suspensions across parts of the Gulf region. 

Diesel consumption showed limited growth, rising just 0.25% year-on-year to 8.282 million tonnes. This was a sharp moderation from March, when diesel sales had increased by 8.1% to 8.727 million tonnes. Compared to April 2024 levels of 7.925 million tonnes, diesel demand was still 4.5% higher. 

Petrol demand remained relatively strong, increasing 6.36% year-on-year to 3.67 million tonnes, although this growth was lower than the 7.6% increase seen in March, when consumption stood at 3.78 million tonnes. Compared to April 2024 levels of 3.825 million tonnes, petrol sales were higher by 11.7%. 

Read More: India Ensures Stable LPG and Fertiliser Supply Amid West Asia Tensions! 

Conclusion 

April’s fuel consumption data highlights the uneven impact of global supply disruptions, with LPG bearing the brunt of constraints while petrol and diesel demand continued to expand, albeit at a moderated pace. 

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