India's LPG consumption nosedives 16% amid US-Iran war
What's the story
India's LPG consumption has seen a major decline of 16% in April. The fall is mainly due to supply disruptions caused by the ongoing West Asia conflict, which has affected availability for both household kitchens and commercial users. The latest official data shows that LPG consumption stood at 2.2 million tons in April, down from 2.62 million tons during the same period last year.
Monthly comparison
LPG sales lower than last year's figures
The LPG consumption in April was also lower than the 2.45 million tons of LPG sales recorded in April 2024. It was a month-on-month decline from March's consumption of 2.379 million tons, according to data from the Oil Ministry's Petroleum Planning and Analysis Cell (PPAC). The drop in LPG consumption for April is less than March's year-on-year (YoY) fall of 12.8%.
Supply disruptions
India imports around 60% of its LPG needs
India imports around 60% of its LPG needs, mostly through the Strait of Hormuz. However, this route has been effectively shut after US and Israeli strikes on Iran and Tehran's retaliation. With supplies from Saudi Arabia and the UAE disrupted, the Indian government has curtailed LPG supplies to commercial establishments such as hotels and industries. This is to ensure enough supply for household cooking gas consumption.
Fuel impact
ATF consumption declines due to war impacts
The ongoing war has led to airspace closures in several Gulf nations and the suspension of flights. This has resulted in a 1.37% decline in jet fuel or ATF consumption to 761,000 tons in April compared to last year. The decline was also seen month-on-month from March's sales of 807,000 tons.
Diesel demand
Diesel sales moderate, petrol sales rise
Apart from the war-impacted fuels, diesel sales have also moderated with a mere 0.25% rise to 8.282 million tons in April. This is a major decline from March's 8.1% increase to 8.727 million tons. On the other hand, petrol sales witnessed a growth of 6.36% to 3.67 million tons in April, which was lower than March's rise of 7.6% to 3.78 million tons.