India LPG Consumption Drops Amid West Asia Conflict
Analysis based on 13 articles · First reported Apr 19, 2026 · Last updated Apr 19, 2026
The decline in India's LPG consumption and the government's measures to manage supply shortages could impact energy companies operating in India, potentially leading to increased domestic production and reduced reliance on imports. The disruption also highlights the vulnerability of global supply chains to geopolitical conflicts, which could affect commodity prices and trade flows.
India's cooking gas (LPG) consumption fell by a steep 13% in March 2026, primarily due to supply disruptions caused by the West Asia conflict. The conflict led to the effective closure of the Strait of Hormuz, a crucial route for India's LPG imports, impacting supplies from key exporters like Saudi Arabia and the United Arab Emirates. In response, the government of India cut LPG supplies to commercial establishments and industries to prioritize household availability and directed refineries to divert feedstock from petrochemical production to boost domestic LPG output. This resulted in a rise in domestic LPG production to 1.4 million tonnes in March from 1.1 million tonnes a year prior. Despite the March decline, overall LPG consumption for the fiscal year ending March 2026 increased by 6%. The conflict also affected aviation fuel consumption, which remained almost flat, while petrol and diesel sales saw a rise.
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