India LPG Consumption Falls Amid West Asia War
Analysis based on 11 articles · First reported Mar 17, 2026 · Last updated Mar 17, 2026
The West Asian conflict and the effective closure of the Strait of Hormuz have significantly disrupted global energy supply chains, leading to a steep decline in LPG and ATF consumption in India. This situation negatively impacts the profitability of fuel retailers like Indian Oil Corporation, Hindustan Petroleum, and Bharat Petroleum, and raises concerns about energy security and inflation in India.
LPG consumption in India fell by 17.7% in the first half of March due to supply disruptions caused by the ongoing war in West Asia. India, which imports about 60% of its LPG requirements, primarily through the Strait of Hormuz, faced challenges after the Strait was effectively shut following strikes by the United States and Israel on Iran and subsequent retaliation by Iran. This disruption affected supplies from key exporters like Saudi Arabia and the United Arab Emirates. In response, the government of India cut LPG supplies to commercial establishments to prioritize household cooking gas availability. Additionally, aviation turbine fuel (ATF) consumption also declined by 4% due to airspace closures and flight suspensions in Gulf countries. Despite these challenges, petrol and diesel sales in India saw a significant increase.
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