India LPG Consumption Falls 17% To 8.8 Million Tonnes In April-July Amid Hormuz Disruption

India’s LPG consumption declined 17% year-on-year to 8.8 million tonnes during April-July, according to data from the Petroleum Planning and Analysis Cell (PPAC) under the oil ministry cited in a report by Moneycontrol. The decline came amid supply disruptions in West Asia following the blockade of the Strait of Hormuz.

Demand was also affected by government restrictions on commercial LPG sales and appeals to consumers to shift towards alternatives such as piped natural gas (PNG).

Petrol, diesel demand rises

While LPG consumption weakened, demand for transport fuels remained stronger. Petrol consumption increased 6% during April-July to 15.2 million tonnes, compared with 14.2 million tonnes in the corresponding period of the previous fiscal year.

Diesel consumption rose 4% to 33.7 million tonnes, from 32.3 million tonnes a year earlier. Aviation turbine fuel (ATF) consumption was broadly unchanged at 2.9 million tonnes during the four-month period.

LPG demand showed signs of recovery in July after restrictions on commercial supplies were withdrawn. Consumption increased 7.5% from June to 2.35 million tonnes, marking the highest monthly level since March. Petrol demand rose 1% to 3.8 million tonnes, while diesel consumption fell 6% to 8.1 million tonnes.

US emerges as major LPG supplier

India’s LPG import mix has also changed significantly in 2026 as supplies from Gulf countries were disrupted. Data from commodity analytics firm Kpler showed that the US supplied 3.6 million tonnes of LPG between January and July, while imports from the UAE, Saudi Arabia, Qatar and Kuwait collectively stood at 5.3 million tonnes.

The disruption to shipping through the Strait of Hormuz has made the US the single-largest source of LPG for India at points during the period.

India imports around 60% of its LPG requirements, with roughly 90% of those imports previously coming through the Gulf via Hormuz.

India has secured sufficient crude and LPG supplies through September, reducing immediate concerns over domestic availability. However, industry sources warned that further escalation around Hormuz or the Red Sea could complicate future supplies.

Analysts expect Indian refiners to continue diversifying their LPG sourcing beyond the Gulf even after the West Asia conflict eases.