India’s LPG Consumption Drops 13% Year-on-Year Amid West Asia Tensions

Rising tensions in West Asia have begun to ripple through India’s energy landscape, and the effects are now visible in everyday fuel consumption. One of the clearest signals came in March 2026, when the country saw a sharp dip in the use of cooking gas (LPG).

A noticeable dip in March consumption

India’s LPG consumption fell to 2.379 million tonnes in March 2026, down from 2.729 million tonnes in March 2025. This marks a significant 13% year-on-year decline, highlighting how global disruptions can quickly influence domestic energy patterns.

Supply disruptions behind the fall

India depends on imports for nearly 60% of its LPG needs, with a large share passing through the Strait of Hormuz. Ongoing tensions in West Asia disrupted this crucial route, along with supplies from key partners like Saudi Arabia and the UAE. The result: tighter availability and reduced consumption.

Government shifts focus to households

To prevent shortages in homes, the government adjusted supply priorities. Domestic LPG consumption saw a moderate drop of 8.1%, while sharper cuts were made elsewhere. Commercial LPG usage plunged by around 48%, and bulk consumption fell steeply by 75.5%, as supplies to hotels and industries were curtailed.

Bigger picture remains positive

Despite the March setback, the broader trend tells a more stable story. Total LPG consumption for the full year reached 33.2 million tonnes, reflecting a healthy 6% growth compared to the previous year.

Transport fuels hold steady momentum

While LPG faced pressure, other fuels remained resilient. Aviation turbine fuel (ATF) demand stayed largely unchanged, while petrol consumption rose by 7.6% and diesel by 8.1%. This indicates that transportation and mobility demand in India continues to stay strong.

In short, while geopolitical tensions briefly disrupted LPG consumption, India’s overall fuel demand—especially for transport, continues to show steady growth.