Daijiworld Media Network – New Delhi

New Delhi, Sep 6: India's consumption of liquefied petroleum gas (LPG) fell by 16 per cent during April-August as the government intensified efforts to shift households towards piped natural gas (PNG) following disruptions in LPG supplies caused by the West Asia conflict.

According to data from the Petroleum Planning and Analysis Cell (PPAC), LPG consumption declined to 11.3 million tonnes during April-August from 13.4 million tonnes during the corresponding period of the previous fiscal.

LPG demand also dropped by 16 per cent in August to 2.4 million tonnes, compared to 2.9 million tonnes in August 2025.

The petroleum ministry has asked states and Union Territories to provide district-level administrative support to speed up the transition of households from LPG to PNG. The ministry has sought the appointment of nodal officers to coordinate with gas distributors and oil marketing companies.

In a letter to state chief secretaries on August 21, Petroleum Secretary Neeraj Mittal said PNG, being a safer, cleaner and more efficient cooking fuel, could play an important role in India's energy transition. He also said the increased use of piped gas would reduce the logistical burden associated with LPG distribution and improve convenience for consumers.

While LPG consumption declined, demand for petrol and diesel continued to rise during the April-August period, reflecting stronger mobility demand.

Petrol consumption increased by 6.4 per cent to 18.9 million tonnes from 17.8 million tonnes during the corresponding period of the previous fiscal. Diesel consumption rose by 4.3 per cent to 40.5 million tonnes from 38.9 million tonnes.

In August, petrol consumption rose by 7.9 per cent to 3.8 million tonnes, while diesel consumption increased by 6.4 per cent to 7 million tonnes. Analysts attributed the rise in diesel demand partly to uneven monsoon conditions, which forced farmers to depend heavily on diesel-powered pumps for Kharif crops during dry spells.

India's LPG import basket has also witnessed a major shift, with supplies from Gulf countries declining and imports from the United States increasing significantly.

According to commodity analytics firm Kpler, the US supplied 276,000 tonnes of LPG to India during August, while imports from the UAE stood at 68,000 tonnes.

Following disruptions in the Strait of Hormuz, the US has emerged as India's largest single source of LPG supplies after shipments from traditional Gulf suppliers were severely affected.
India imports around 60 per cent of its LPG requirements, with nearly 90 per cent of these imports traditionally coming from Gulf countries through the Strait of Hormuz.

The country has secured adequate crude oil and LPG supplies through September, easing immediate concerns over domestic availability. However, industry sources said any escalation in tensions around the Strait of Hormuz or the Red Sea could pose challenges in securing supplies in the coming months.

Analysts expect India's strategy of diversifying its energy imports to continue beyond the West Asia conflict, although the Gulf region is likely to remain an important supplier of crude oil and LPG to the country.