India's LPG demand falls 13% in March; bulk sales plunge over 75%

India’s cooking gas LPG consumption fell sharply by nearly 13% in March as supply disruptions linked to the West Asia conflict hit availability for both household and commercial users, official data showed.

LPG consumption declined 12.8% year-on-year to 2.379 million metric tonnes in March, from 2.729 million tonnes a year earlier, according to data from the Petroleum Planning and Analysis Cell (PPAC).

India, which imports about 60% of its LPG requirements, relies heavily on supplies routed through the Strait of Hormuz. Shipments were disrupted after the waterway was effectively shut following US and Israeli strikes on Iran and Tehran’s retaliation.

Disruptions in supplies from Saudi Arabia and the United Arab Emirates further tightened availability.

The government curtailed supplies to commercial and industrial users, including hotels, to prioritise household cooking fuel.

Sales of LPG to domestic households fell 8.1% year-on-year in March to 2.219 million tonnes, while supplies to non-domestic users dropped nearly 48%.

Bulk LPG sales saw a steep decline of 75.5%.

The decline in consumption contrasts with government statements that domestic LPG supplies remained adequate and that household demand was fully met.

To offset the shortfall, refineries were directed to divert feedstock from petrochemical production to boost LPG output.

As a result, domestic LPG production rose to 1.4 MT in March from 1.1 MT a year earlier.

For the full 2025/26 fiscal year (April-March), LPG production increased to 13.1 million tonnes, compared with 12.8 million tonnes in the previous year.

The overall LPG consumption for the fiscal year rose about 6% to 33.212 million tonnes, supported by steady household demand.

Indigenous crude oil production fell 5.3% year-on-year in March to 2.3 million tonnes, while total crude processed by refineries declined 1.8% to 23.5 million tonnes.

Crude imports dropped 17% during the month, even as prices surged.

Brent crude averaged $103.89 per barrel in March, sharply higher than $71.15 in February and $72.60 a year earlier. The Indian crude basket averaged $113.49 per barrel.

Consumption of petroleum products rose 3.2% year-on-year in March to 21.38 million tonnes, while full-year demand increased 1.7% to 243.2 million tonnes, driven by higher use of diesel, gasoline and LPG.

Natural gas consumption rose 7.2% year-on-year in March, though officials said actual liquefied natural gas imports for the month are likely to be lower than preliminary estimates due to the Middle East conflict.