India’s liquefied petroleum gas (LPG) consumption declined by 8% year-on-year during the first half of 2026 as per the news report. This was due to disruptions in supply caused by the conflict in West Asia, resulting in the closure of the Strait of Hormuz.
The conflict in West Asia significantly disrupted India's LPG supply, primarily due to the closure of the Strait of Hormuz. This critical passage facilitates the transit of 90% of the LPG imported from the Middle East Gulf, which makes up 60% of India's domestic requirement. Consequently, from January to June 2026, India's LPG consumption fell to 14.74 million tonnes, compared to 15.95 million tonnes in the same period the previous year.
During June 2026, LPG consumption declined by approximately 17% compared to June 2025, standing at 2.18 million tonnes. However, on a month-to-month basis, consumption rose by over 2% as more LPG shipments reached Indian ports, particularly from the US, which became India's largest supplier from March to June 2026.
May 2026 marked an unprecedented low in LPG usage, with a total consumption of 2.13 million tonnes. This was the lowest recorded in over 5 years, surpassing the lows witnessed during the COVID-19 pandemic in April 2021 and 2020.
Meanwhile, seasonal variations also usually see reduced consumption during summer months. Early in June 2026, LPG usage was around 72,000 tonnes per day, while the fiscal years FY24, FY25, and FY26 recorded average daily usages of 81,271 tonnes, 85,830 tonnes, and 90,991 tonnes respectively.
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Efforts to stabilise LPG supply are underway with the signing of a memorandum of understanding between the US and Iran, granting a 60-day sanctions reprieve for Tehran. This has enabled an increase in vessels transiting the Strait of Hormuz with crude oil, LNG, and LPG. Additionally, India's government reduced prices for commercial LPG and 5 kg cylinders, hinting at improving supply conditions.
India's LPG consumption dropped by 8% to 14.74 million tonnes in the first half of 2026 due to supply disruptions caused by the West Asia conflict. Monthly lows were observed in May 2026 with 2.13 million tonnes, while recent developments seek to normalise supply.
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Published on: Jul 2, 2026, 4:55 PM IST
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