LPG Use Down 8% Even After Supply Normalised: Here's The Reason

The Petroleum Ministry has announced that the supply of domestic LPG, piped natural gas (PNG) and compressed natural gas (CNG) has now been fully restored across the country.

Commercial LPG supplies, which had been reduced during the crisis to prioritise domestic consumers, have also returned to normal levels.

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Key points generated by AI, verified by newsroom

• India's LPG consumption dropped 8% due to supply disruptions.
• Conflict disrupted critical LPG imports via Strait of Hormuz.
• May recorded India's lowest LPG consumption in five years.

The impact of the conflict between Iran and the US was felt globally, with crude oil prices rising and gas supplies coming under pressure.

According to a recent report by the Petroleum Planning and Analysis Cell (PPAC), India's LPG consumption declined by 8 per cent during the first six months of 2026.

The report said India consumed approximately 14.7 million tonnes of LPG between January and June 2026, compared with 15.9 million tonnes during the corresponding period last year.

Supply Disruptions, Not Demand, Behind The Decline

The government said the fall in LPG consumption was not due to weaker demand but was the result of supply disruptions.

India imports around 60 per cent of its total LPG requirement, and nearly 90 per cent of these imports come from Gulf countries in West Asia.

Most of these shipments reach India through the Strait of Hormuz, a route that was affected during the conflict, leading to disruptions in supplies.

May Recorded Lowest Consumption In Five Years

The impact of the supply disruptions was most visible in May, when LPG consumption dropped to around 2.13 million tonnes, the lowest level recorded in the past five years.

Although LPG consumption in June remained about 17 per cent lower than the corresponding month last year, it registered an increase of more than 2 per cent compared with May.

Government Says Supplies Have Normalised

The Petroleum Ministry has announced that the supply of domestic LPG, piped natural gas (PNG) and compressed natural gas (CNG) has now been fully restored across the country.

Commercial LPG supplies, which had been reduced during the crisis to prioritise domestic consumers, have also returned to normal levels.

The ministry added that online LPG bookings have normalised and that there are currently no stock shortages at gas agencies across the country.