LPG Demand in India Declines: Bookings Decrease to 46-50 Lakh as Supply Remains Steady

In a recent disclosure, the Indian government noted a reduction in the liquefied petroleum gas (LPG) demand, with current bookings dropping to between 46 lakh and 50 lakh.  

Despite this seasonal dip, authorities have assured that the nation's supply chain remains unaffected. 

Current LPG Demand and Bookings Scenario 

According to Sujata Sharma, Joint Secretary (Marketing & Oil Refinery) at the Ministry of Petroleum and Natural Gas, the country is experiencing a decline in LPG demand, attributed primarily to seasonal changes.  

The current booking numbers, ranging from 46 lakh to 50 lakh, represent a decrease from previous figures exceeding 50 lakh. 

The government's briefing coincided with discussions on geopolitical dynamics affecting energy supplies, although they maintain that domestic availability remains unhampered. 

Stable Supply Assured by Government 

Addressing public concerns, Sharma emphasised that, despite a fall in demand, there have been no LPG shortages at the distribution level.  

Deliveries are being managed seamlessly across various regions. She reported that domestic LPG production is fluctuating between 46,000 and 50,000 MMT, which is adequate to meet the current demand. 

The operation of refineries at optimal capacities and adequate crude oil stocks contribute to maintaining an uninterrupted supply chain. 

Auto LPG and Infrastructure Development 

In the auto LPG sector, public sector oil companies recorded a decrease in sales from 296 tons per day in April to 177 tons per day in February.  

Notably, states such as Karnataka, Tamil Nadu, and Telangana are witnessing an increase in auto LPG sales. 

Read More: LPG Supply Status in India: Stability in Domestic Segment Amid Geopolitical Pressures!  

Government Measures to Mitigate Demand Pressure 

The government is working to alleviate the pressure on LPG demand by promoting the expansion of the Piped Natural Gas (PNG) network.  

State authorities have been advised to expedite approvals to support this initiative. 

Consumers are urged to ignore rumours about potential fuel shortages, as the supply chain remains robust, ensuring no unnecessary concerns about availability. 

Conclusion 

While the decline in LPG demand during the summer months is evident, with bookings recorded between 46 lakh and 50 lakh, the Indian government assures consistently stable supply levels. Efforts to boost piped natural gas networks reflect steps taken to strategically address energy distribution challenges. 

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