LPG Consumption Slumps 17 Per Cent In March Amid War-Linked Supply Disruptions In West Asia

New Delhi, Mar 17: Cooking gas LPG consumption in India fell by a steep 17.7 per cent in the first half of March on the back of supply disruptions due to war in West Asia, preliminary industry data showed.

LPG consumption fell to 1.147 million tonne during the first fortnight of March, 17.3 per cent lower than 1.387 million tonne consumed in the same period last year and 26.3 per cent lower than 1.557 million tonne demand in the first half of February.

Supply disruptions linked to West Asia conflict

India imports about 60 per cent of its LPG requirements, much of it via the Strait of Hormuz, which has been effectively shut following US and Israeli strikes on Iran and Tehran's retaliation.

With supplies from Saudi Arabia and the United Arab Emirates disrupted, the government has cut LPG supplies to commercial establishments like hotels and industries to safeguard household cooking gas availability.

Data shows sharp year-on-year and monthly decline

Preliminary sales data of three state-owned fuel retailers, who control roughly 90 per cent of the market, showed LPG consumption during March 1 to March 15 was 16 per cent lower than the demand in the same period of 2024 and 10.6 per cent lower than March 1–15, 2023.

LPG consumption has grown at a steady 3–4 per cent annually in recent years, driven by government efforts to replace firewood and other polluting fuels.

Jet fuel demand also impacted, petrol and diesel rise

With the war leading to airspace closure in many Gulf countries and suspension of flights, jet fuel or ATF consumption fell 4 per cent to 327,900 tonne in the first fortnight of March when compared with the same period last year. It was down 12.3 per cent month-on-month.

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Other than the two war-impacted fuels, petrol and diesel sales posted a handsome rise in demand. Petrol sales were up 13.2 per cent to almost 1.5 million tonne, while diesel consumption rose 8.2 per cent to 3.384 million tonne.

Month-on-month, petrol consumption was up 11.2 per cent and diesel sales rose 7.7 per cent.

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