New Delhi, March 17 Cooking gas, LPG consumption in India fell by a steep 17.7 per cent in the first half of March due to supply disruptions caused by the war in the Middle East, preliminary industry data showed.
LPG consumption fell to 1.147 million tonnes during the first fortnight of March, 17.3 per cent lower than the 1.387 million tonnes consumed during the same period last year, and 26.3 per cent lower than the 1.557 million tonnes demand in the first half of February.
India imports about 60 per cent of its LPG requirements, much of it via the Strait of Hormuz, which has been effectively closed following US and Israeli strikes on Iran and Tehran's retaliation.
With supplies from Saudi Arabia and the United Arab Emirates disrupted, the government has cut LPG supplies to commercial establishments like hotels and industries to ensure the availability of cooking gas for households.
Preliminary sales data from three state-owned fuel retailers, who control roughly 90 per cent of the market, showed that LPG consumption from March 1 to March 15 was 16 per cent lower than the demand in the same period of 2024, and 10.6 per cent lower than March 1-15, 2023.
LPG consumption has grown at a steady 3-4 per cent annually in recent years, driven by government efforts to replace firewood and other polluting fuels.
With the war leading to airspace closure in many Gulf countries and the suspension of flights, jet fuel or ATF consumption fell by 4 per cent to 327,900 tonnes in the first fortnight of March, compared to the same period last year. It was down 12.3 per cent month-on-month.
Besides the two war-impacted fuels, petrol and diesel sales also posted a significant increase in demand. Petrol sales were up 13.2 per cent to almost 1.5 million tonnes, while diesel consumption rose by 8.2 per cent to 3.384 million tonnes.
Month-on-month, petrol consumption was up 11.2 per cent and diesel sales rose by 7.7 per cent.
