LPG Demand Falls 17% in March Amid War-Linked Shortages

India’s LPG consumption fell sharply in early March, by 17.7%. This drop was due to supply disruptions linked to the ongoing conflict in West Asia, according to preliminary data.

Consumption stood at 1.147 million tonnes in the first half of March. This was lower than 1.387 million tonnes in the same period last year. Moreover, it was down 26.3% compared to early February demand.

India depends on imports for about 60% of its LPG needs. A major share is routed through the Strait of Hormuz, which has been disrupted after strikes involving Iran.

Supply issues from Saudi Arabia and the United Arab Emirates led the government to cut LPG supply to commercial users. This was done to prioritise household demand.

Data from state-run fuel retailers, which control around 90% of the market, showed that LPG demand between 1st March and 15th March was also lower. This applied for the same period in 2023 and 2024.

While LPG and aviation fuel demand declined, petrol and diesel consumption rose strongly. However, ATF usage fell due to flight disruptions caused by airspace closures in the region.

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