Following larger fears of tightening of global energy supply chains, India’s cooking gas consumption has fallen by nearly 13% in FY26 March as compared to the same time last year. According to the official data posted by the Oil Ministry’s Petroleum Planning and Analysis Cell, India’s LPG consumption was recorded at 2.379 million tonne in March of 2026 that is 12.8% lower than 2.729 million tonne consumed in the same period last year.

Researchers interviewed by news agency PTI on the matter have linked the fall in India’s LPG consumption to larger supply disruptions caused by US and Israel’s war on Iran. As per the PTI report, concerns regarding possible shortage of LPG have struck both household kitchens and commercial ventures like restaurants and hotel chains alike.

Hormuz and war disruption

Prior to the beginning of the war in West Asia, India had been importing about 60% of its LPG requirements, a sizable portion of which came from the Strait of Hormuz. The critical waterway has been opened and shut repeatedly following the unstable truce between United States and Iran. In the most recent update on the matter, two India bound vessels were attacked by Iranian guards on Saturday and 12 others were made to turn back.

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After a drop in energy supplies from Saudi Arabia and the United Arab Emirates, the Centre prioritised LPG distribution to households, temporarily restricting supplies to hotels and restaurants. According to the Oil Ministry’s Petroleum Planning and Analysis Cell (PPAC), LPG cylinders sold to domestic households fell 8.1% to 2.219 million tonnes in March 2026 while those sold to non-domestic users went down almost 48%.

PTI reported that the PPAC data showed lower consumption when compared to government claims of LPG supplies being normal and all demand from domestic users being met. However, it is important to note that the latest PPAC data is provisionary in nature.

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Apart from LPG, the larger aviation based disruption caused by the war also fuelled India’s ATF (aviation turbine fuel) consumption to 807,000 tonne in March 2026 from 801,000 tonne a year ago.

Other than the two war-impacted fuels, petrol and diesel sales posted a handsome rise in demand. Petrol sales were up 7.6% to 3.78 million tonnes while diesel consumption rose 8.1% to 8.727 million tonnes.

India’s Fuel Consumption FY26: War Disruption Dents LPG, Drives ATF

PPAC Provisional Data | April 2025 – March 2026 | Units: ‘000 Metric Tonnes
-12.8%
LPG YoY Change (Mar 2026)
2,379
LPG Consumed (000 MT, Mar 26)
+8.1%
Diesel (HSD) YoY Growth
+7.6%
Petrol (MS) YoY Growth
West Asia Crisis Impact
War disrupts Hormuz supplies; LPG hardest hit
India’s LPG consumption fell 12.8% in March 2026 versus the same period last year, with 2,379 thousand tonnes recorded against 2,729 thousand tonnes in March 2025. Researchers link the drop to supply chain disruptions from the US-Israel war on Iran. Two India-bound vessels were attacked by Iranian guards, and 12 others were turned back.
Overall Market | March 2026
Total POL consumption grew 3.2% YoY despite LPG slump
While LPG and domestic usage fell sharply, overall petroleum product consumption rose 3.2% year-on-year in March 2026, buoyed by strong diesel and petrol demand. ATF inched up 0.6% to 807,000 tonnes as war-disrupted flight routes raised fuel burn. Total FY26 consumption reached 243.2 million tonnes.
Source Note
Data is provisional; YoY figures from article
Monthly FY26 figures are from PPAC’s Y2 Report (published 06.04.2026) and are provisional in nature. March 2025 comparisons sourced from article. LPG domestic household figure of 2,219 thousand tonnes and non-domestic near-48% drop are as reported by PTI from PPAC data.
-8.1%
Household LPG Drop (Mar 26)
~-48%
Non-Domestic LPG Drop (Mar 26)
60%
LPG Import Dependence (Pre-War)
1
Strait of Hormuz repeatedly shut
India imported ~60% of its LPG requirements, a major share routed through the Strait of Hormuz. The critical waterway has been opened and shut repeatedly following the unstable US-Iran truce, cutting supplies from Saudi Arabia and the UAE.
2
Households prioritised over commercial users
After energy supply drops from Gulf states, the Centre prioritised LPG distribution to households, temporarily restricting supplies to hotels and restaurants. Domestic household cylinders fell 8.1% to 2,219 thousand tonnes in March 2026.
3
Non-domestic sector bore the brunt
Commercial users — restaurants, hotel chains, and other non-domestic consumers — saw LPG supplies drop nearly 48%, the steepest fall in the data, as the government shielded household consumption from the full impact of the supply crunch.
4
Data contradicts government claims
PPAC’s provisional data showed lower consumption than official government statements claiming LPG supplies were normal and domestic demand was being fully met. The provisional nature of the data means figures may be revised.
Product Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY26 Total
LPG 2,545 2,682 2,554 2,810 2,833 2,794 2,871 2,843 3,067 3,012 2,822 2,379 33,212
MS (Petrol) 3,449 3,782 3,522 3,493 3,544 3,399 3,665 3,517 3,555 3,511 3,369 3,779 42,586
HSD (Diesel) 8,261 8,592 8,105 7,356 6,577 6,786 7,620 8,557 8,470 7,993 7,661 8,726 94,704
ATF 772 776 730 710 710 720 773 788 784 827 764 807 9,161
Naphtha 935 945 984 962 1,065 1,010 924 918 986 1,057 1,012 943 11,741
Pet Coke 1,562 1,810 1,504 1,720 2,239 1,495 1,567 1,330 1,774 1,391 1,722 1,730 19,845
FO & LSHS 494 504 498 489 501 526 566 545 550 548 528 649 6,397
Bitumen 862 857 699 426 369 507 604 884 873 822 921 1,017 8,841
Lub & Greases 398 364 393 393 373 461 415 401 451 371 411 483 4,914
SKO 26 39 41 36 34 37 43 43 42 38 38 44 460
LDO 86 81 86 86 80 90 75 88 76 83 82 95 1,009
Others 837 874 926 874 818 807 827 869 964 953 859 713 10,322
TOTAL 20,227 21,306 20,042 19,354 19,143 18,632 19,952 20,782 21,594 20,605 20,190 21,367 2,43,192
All figures rounded to nearest thousand MT. Mar 2026 LPG (highlighted red) is the article’s focus — sharpest YoY fall. Source: PPAC Y2 Report, 06.04.2026 | P-Provisional
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