LPG use drops sharply while petrol, diesel surge

New Delhi: LPG consumption fell sharply in the first half of March as supply disruptions linked to the West Asia conflict hit availability, according to preliminary industry data.

Consumption declined to 1.147 million tonnes during March 1–15, down 17.3% year-on-year from 1.387 million tonnes in the same period last year. On a month-on-month basis, demand dropped 26.3% compared to 1.557 million tonnes in the first half of February.

The fall is attributed to disruptions in imports, with India sourcing nearly 60% of its LPG requirement from overseas. Data from state-owned fuel retailers, which account for around 90% of the market, showed LPG demand during the first fortnight of March was about 16% lower than the same period in 2024 and 10.6% lower than in 2023.

While LPG and aviation fuel demand weakened, other transport fuels saw strong growth. Jet fuel consumption fell 4% year-on-year and 12.3% month-on-month due to airspace restrictions in parts of the Gulf.

In contrast, petrol consumption rose 13.2% to 1.5 million tonnes, while diesel demand increased 8.2% to 3.384 million tonnes, indicating continued strength in mobility and economic activity.