LPG Consumption Falls 9 Per Cent in September
OIL & GAS

LPG Consumption Falls 9 Per Cent in September

India’s liquefied petroleum gas (LPG) consumption fell 9.15 per cent year-on-year to 2,636 thousand metric tonnes (TMT) in September 2026, remaining below pre-war levels, according to data from the Petroleum Planning and Analysis Cell (PPAC). Consumption stood at 2,902 TMT in September 2025 and 2,725 TMT in September 2024.

The decline was sharper during the first six months of the financial year. LPG consumption between April and September fell 14.93 per cent to 13,797 TMT from 16,218 TMT in the corresponding period of 2025-26, leaving usage about 2.42 mn tonnes below the year-ago level.

The reduction came as supplies through the Strait of Hormuz remained disrupted amid the conflict involving Iran, Israel and the US. The route is a major channel for global energy supplies, and the disruption has prompted India to diversify its sources of LPG, crude oil and liquefied natural gas (LNG).

Greater adoption of piped natural gas (PNG) by households and industries may also have contributed to the decline. During a government drive from January to June 2026, about 1.21 mn new PNG connections and 1.53 mn domestic PNG registrations were added, while daily additions of billed consumers increased from about 2,781 to approximately 7,500.

India has also raised domestic LPG output through public sector, joint venture and private refineries, along with upstream oil companies, to reduce exposure to import disruptions. Production has reached 63.81 thousand metric tonnes a day. In contrast, transport fuel demand increased in September, with petrol consumption rising 7.95 per cent to 3,644 TMT and diesel consumption climbing 6.55 per cent to 7,116 TMT.

The United Arab Emirates was India’s largest LPG supplier in September, providing 529,211 tonnes, or nearly 40 per cent of imports, according to maritime intelligence firm Kpler. The US supplied 337,401 tonnes, followed by Kuwait with 132,544 tonnes, Qatar with 115,340 tonnes and Iran with 66,231 tonnes. The US had led India’s LPG supply over the previous six months.

India’s liquefied petroleum gas (LPG) consumption fell 9.15 per cent year-on-year to 2,636 thousand metric tonnes (TMT) in September 2026, remaining below pre-war levels, according to data from the Petroleum Planning and Analysis Cell (PPAC). Consumption stood at 2,902 TMT in September 2025 and 2,725 TMT in September 2024. The decline was sharper during the first six months of the financial year. LPG consumption between April and September fell 14.93 per cent to 13,797 TMT from 16,218 TMT in the corresponding period of 2025-26, leaving usage about 2.42 mn tonnes below the year-ago level. The reduction came as supplies through the Strait of Hormuz remained disrupted amid the conflict involving Iran, Israel and the US. The route is a major channel for global energy supplies, and the disruption has prompted India to diversify its sources of LPG, crude oil and liquefied natural gas (LNG). Greater adoption of piped natural gas (PNG) by households and industries may also have contributed to the decline. During a government drive from January to June 2026, about 1.21 mn new PNG connections and 1.53 mn domestic PNG registrations were added, while daily additions of billed consumers increased from about 2,781 to approximately 7,500. India has also raised domestic LPG output through public sector, joint venture and private refineries, along with upstream oil companies, to reduce exposure to import disruptions. Production has reached 63.81 thousand metric tonnes a day. In contrast, transport fuel demand increased in September, with petrol consumption rising 7.95 per cent to 3,644 TMT and diesel consumption climbing 6.55 per cent to 7,116 TMT. The United Arab Emirates was India’s largest LPG supplier in September, providing 529,211 tonnes, or nearly 40 per cent of imports, according to maritime intelligence firm Kpler. The US supplied 337,401 tonnes, followed by Kuwait with 132,544 tonnes, Qatar with 115,340 tonnes and Iran with 66,231 tonnes. The US had led India’s LPG supply over the previous six months.

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