India’s LPG Consumption Falls 17.7% In Early March Amid West Asia Supply Disruptions

India recorded a sizeable fall in cooking gas (LPG) consumption during the first half of March as supply disruptions stemming from the conflict in West Asia tightened availability. Preliminary industry data showed that LPG usage dropped to 1.147 million tonnes between March 1 and March 15, significantly lower than both year‑ago and month‑ago levels.

India imports roughly 60% of its LPG requirements, much of it transiting through the Strait of Hormuz, which has been effectively shut following escalating US–Israel–Iran hostilities. With supplies from key exporters such as Saudi Arabia and the United Arab Emirates impacted, the government moved to prioritise household availability by reducing commercial‑sector allocations.

LPG Consumption Drop in Early March

Consumption in the first fortnight of March declined sharply due to disrupted maritime supply routes and lower import volumes. Demand was down 17.7% year on year compared with 1.387 million tonnes in the same period last year, and 26.3% lower than the first half of February at 1.557 million tonnes.

Data from state-owned fuel retailers, which account for about 90% of the market, showed a 16% drop versus March 1–15, 2024 and a 10.6% decline compared with the same period in 2023. These trends highlight the impact of constrained shipping routes and delayed cargo arrivals on domestic supply.

Import Disruptions Linked to West Asia Conflict

India’s dependence on LPG imports exposes it to geopolitical risks in key shipping corridors. The Strait of Hormuz, through which a substantial share of global LPG shipments pass, has faced closures following retaliatory strikes between the US, Israel and Iran.

This has resulted in rerouted vessels, shipment delays and reduced dispatches from major suppliers such as Saudi Arabia and the UAE. The government responded by cutting supplies to commercial establishments, including hotels and industrial units, to safeguard household usage.

Comparison With Long‑Term Consumption Trends

LPG consumption in India has typically grown at 3–4% annually, supported by a gradual shift away from polluting fuels and increased rural penetration. Government initiatives and wider cylinder coverage have strengthened adoption across semi-urban and rural regions.

However, the sharp drop in early March marks a deviation from usual trends, with consumption at 1.147 million tonnes during March 1–15, 2026, down 17.7% year on year from 1.387 million tonnes in 2025 and 26.3% lower than 1.557 million tonnes recorded in February 1–15, 2026. This decline highlights the temporary disruption in demand patterns despite a structurally positive growth trajectory.

Read More: LPG Crisis in India Results in Induction Stoves Shortage.

Conclusion

India’s LPG consumption saw a sharp drop in early March due to supply constraints linked to the West Asia conflict and the closure of key shipping routes. With household consumption prioritised, commercial users faced reduced allocations, while downstream indicators such as ATF demand also weakened.

Although India’s LPG usage has historically grown steadily, the current disruptions highlight the vulnerability of import‑dependent sectors to geopolitical shocks. The situation will remain closely watched as supply routes adjust and regional tensions evolve.

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