India’s cooking gas LPG consumption fell by 17.7% in the first half of March, as per a report by PTI, on the back of supply disruptions due to war in West Asia.
PTI reported citing the preliminary industry data that LPG consumption fell to 1.147 million tonne during the first fortnight of March, 17.3% lower than 1.387 million tonne consumed in the same period last year and 26.3% lower than 1.557 million tonne demand in the first half of February.
Government curbs commercial LPG supply
LPG consumption has grown at a steady 3-4% annually in recent years, driven by government efforts to replace firewood and other polluting fuels.
However, the steep decline came after the continuing conflict in the Middle East between the US and Iran, which led to the blockade of the Strait of Hormuz, one of the key oil supply routes.
India imports about 60% of its LPG requirements, much of it via the Strait of Hormuz. Following the disruptions in supplies from Saudi Arabia and the United Arab Emirates, the government has cut LPG supplies to commercial establishments such as hotels and industries to safeguard household cooking gas availability.
According to PTI, Preliminary sales data of three state-owned fuel retailers, who control roughly 90% of the market, showed LPG consumption during March 1 to March 15 was 16% lower than the demand in the same period of 2024 and 10.6% lower than March 1-15, 2023.
Jet fuel consumption falls amid Gulf airspace shutdowns
With the war leading to airspace closure in many Gulf countries and suspension of flights, jet fuel or ATF consumption also fell 4% to 327,900 tonne in the first fortnight of March when compared with the same period last year. It was down 12.3% month-on-month.
Other than the two war-impacted fuels, petrol and diesel sales posted a handsome rise in demand, according to PTI. Petrol sales were up 13.2% to almost 1.5 million tonne while diesel consumption rose 8.2% to 3.384 million tonne.
Month-on-month, petrol consumption was up 11.2% and diesel sales rose 7.7%.
The Middle East conflict has also led the crude prices to surge above $100 per barrels.