New Delhi, April 19 -- India's consumption of liquefied petroleum gas (LPG) declined sharply in March, falling by nearly 13 per cent year-on-year as supply chains were strained by the ongoing conflict in West Asia, according to official data.

Total LPG usage stood at 2.379 million tonnes during the month, compared with 2.729 million tonnes in March last year, marking a 12.8 per cent drop. The decline comes as disruptions in key import routes affected availability for both domestic and commercial consumers.

India relies on imports for about 60 per cent of its LPG needs, with a significant portion transported through the Strait of Hormuz. That route faced severe interruptions following military actions involving the United States, Israel, and Iran. Supplies from major exporters such as Saudi Arabia and the United Arab Emirates were also affected.

In response, the government reduced LPG allocations to commercial users, including hotels and industrial units, in order to prioritise household consumption. Data from the Petroleum Planning and Analysis Cell (PPAC) showed domestic LPG sales fell 8.1 per cent to 2.219 million tonnes in March. Sales to non-domestic users dropped by nearly 48 per cent, while bulk LPG consumption plunged 75.5 per cent.

The figures indicate lower overall consumption despite government statements that household demand continued to be met without disruption.

To address the shortfall, authorities instructed refineries to divert feedstock away from petrochemical production to increase LPG output. As a result, domestic production rose to 1.4 million tonnes in March, up from 1.1 million tonnes a year earlier. For the full 2025-26 fiscal year, LPG production increased to 13.1 million tonnes, compared with 12.8 million tonnes in each of the previous two years.

Despite the March dip, annual LPG consumption maintained an upward trend, rising 6 per cent to 33.212 million tonnes in the fiscal year ending March 2026. Growth has been supported by policies promoting cleaner cooking fuels over traditional options such as firewood.

The impact of the conflict was also visible in aviation fuel demand. Consumption of jet fuel, or ATF, remained nearly unchanged at 807,000 tonnes in March, compared to 801,000 tonnes a year earlier, amid flight disruptions and airspace restrictions in parts of the Gulf.

In contrast, demand for transport fuels remained strong. Petrol consumption rose 7.6 per cent to 3.78 million tonnes, while diesel use increased 8.1 per cent to 8.727 million tonnes in March.

For the full fiscal year, ATF demand grew 2 per cent to 9.161 million tonnes. Petrol consumption increased 6.5 per cent to 42.586 million tonnes, and diesel rose 3.6 per cent to 94.705 million tonnes. Among industrial fuels, naphtha demand fell 9.9 per cent and fuel oil declined 1.4 per cent, while bitumen consumption grew 3 per cent to 8.84 million tonnes.

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Published by HT Digital Content Services with permission from Millennium Post.