In recent months, the energy landscape in India has shifted dramatically. Geopolitical tensions in West Asia have disrupted supply chains, particularly affecting the liquefied petroleum gas (LPG) market.
On April 19, 2026, it was reported that LPG consumption in India decreased by 13%, dropping to 2.379 million tons from 2.729 million tons a year earlier. This decline is attributed to the ongoing conflict in the region, which has created significant supply challenges.
Meanwhile, diesel consumption has seen a notable increase. Reports indicate that diesel usage rose by 8.1%, reaching 8.727 million tons. This uptick reflects a growing reliance on diesel as an alternative fuel source amid the LPG shortages.
Separately, petrol sales also experienced growth during this period, increasing by 7.6% to a total of 3.78 million tons. The rise in petrol sales could be linked to consumers seeking alternatives as LPG supplies dwindle.
The commercial sector has not been spared from these fluctuations; commercial LPG usage plummeted by approximately 48%. Bulk LPG sales witnessed an even steeper decline of 75.5%, indicating a sharp contraction in demand from businesses reliant on this fuel.
Domestic LPG sales also fell by 8.1%, totaling 2.219 million tons. These figures underscore the widespread impact of geopolitical events on energy consumption patterns across both commercial and residential sectors.
Despite these challenges, total LPG consumption for the financial year increased by 6%, reaching 33.212 million tons. This growth suggests that while individual sectors may struggle, overall demand for energy remains robust.
The Indian oil and gas market is projected to grow further, with demand expected to reach 5.99 million barrels per day by 2026. As India continues to depend heavily on imports—about 88-90% for crude oil and around 60% for LPG—the implications of these trends are significant.
As the Oil Ministry responds to these developments, Indian refineries have been instructed to ramp up LPG production from petrochemical feedstock to mitigate shortages.
This evolving situation highlights a critical juncture for India’s energy sector as it navigates supply disruptions while adapting to shifting consumer demands.
