LPG Customer Base Declines After 10 Years of Growth Across India

The LPG customer base in India has contracted for the first time in over 10 years. This reduction, particularly between April and August 2026, is linked to the supply challenges resulting from the ongoing Iran war, as per The Economic Times report. 

Supply Challenges Lead to Customer Reduction 

India's LPG customer count dropped by around 6.2 million during April-August 2026, falling from 333.9 million at the fiscal year's start to 327.7 million by September 2026. The Iran conflict has majorly disrupted supply chains, previously accounting for most of India's imports. 

Impact on the Ujjwala Scheme 

The decline also impacted the government's Ujjwala scheme with 0.6 million fewer customers, resulting in 105.7 million active users. 

Transition to Piped Natural Gas (PNG) 

Oil companies encouraged customers to switch from LPG to PNG amid these supply issues, with city gas firms enrolling nearly 0.6 million new PNG customers by July 2026, totalling 17.5 million users. Active PNG accounts increased by 1.06 million to 10.7 million. 

Regional Disparities 

Southern India recorded the highest decrease in LPG households with 2.63 million fewer users, followed by western India at 1.62 million, and northern India at 1.5 million. Eastern India saw a smaller decline, losing 0.34 million customers. 

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State-Wise LPG Customer Figures 

As of early September 2026, northern India had the most extensive LPG base with 99.3 million users, whereas southern India recorded 79.8 million, western India 68.3 million, and eastern India 67.5 million. 

Conclusion 

As of September 2026, India's LPG customer base saw a 1% decline, equating to 6.2 million fewer households, with high regional losses. The decline is linked to the Iran conflict's impact on LPG supply, which previously accounted for 90% of imports. 

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