India rations LPG as 100,000 bpd shortfall follows Hormuz disruptions
India is looking at a drop in liquefied petroleum gas (LPG) demand by around 100,000 barrels a day in 2026, mainly because of disruptions at the Strait of Hormuz, a route that handles much of India's LPG imports.
To manage the shortfall, the government has started rationing LPG supplies.
Priti Mehta sees 60,000 bpd rebound
Kpler's Senior Oil Demand Modelling Analyst Priti Mehta expects India's LPG demand to bounce back a bit in 2027, about 60,000 barrels a day, but it won't fully make up for the earlier loss.
The slower comeback is partly because of the expansion of piped natural gas (PNG).
Meanwhile, global LPG demand is actually rising, especially across Asia. Plus, India's diesel use is set to grow too, even as it drops elsewhere, thanks to economic activity, weaker monsoon conditions, and incomplete retail price pass-through, which has shielded consumers from much of the increase in international fuel costs.