LPG News: Tensions in the Middle East have significantly impacted the LPG supply chain in India. Consequently, LPG consumption in the country has also decreased. Let's explore why demand for gas cylinders is declining

LPG News: The impact of the war between Iran and the US was felt worldwide. Crude oil prices rose, and gas supplies were also significantly affected. Gas prices rose, and people faced shortages. Consequently, people reduced their LPG consumption in the first half of this year, from January 2026 to June 2026.

How much has LPG supply decreased?
A recent report from the Petroleum Planning and Analysis Cell (PPAC) details LPG consumption in the first six months of 2026. According to this report, LPG consumption in India declined by 8% during the war. According to the report, India consumed approximately 14.7 million tons of LPG during January-June 2026, compared to 15.9 million tons during the same period last year.

Why did LPG consumption decline?
Regarding the reduction in LPG consumption, the government says that demand for LPG did not decrease, but rather that supply disruptions caused the decline. India imports approximately 60% of its total LPG needs, and approximately 90% of this comes from Gulf countries in the Middle East. Most of it reaches India via the Strait of Hormuz. This route was affected during the war, disrupting supply.

The impact of
supply disruptions was most pronounced in May, when LPG consumption was approximately 2.13 million tonnes, the lowest level in five years. While June LPG consumption was approximately 17% lower than the previous year, it saw an increase of more than 2% compared to May.

Supply is now
back to normal. The Petroleum Ministry has now announced that 100% supply of domestic LPG, piped natural gas (PNG), and CNG has been restored nationwide. Commercial LPG supplies, which were reduced to prioritize domestic consumers during the crisis, have also returned to normal. Online gas bookings have returned to normal levels, and there are no stock shortages at any gas agency.

PC: ABP News