India’s LPG Consumption Falls 16% in April-August as Supply Disruptions Drive Shift to PNG

India’s LPG consumption: India's LPG consumption declined 16% to 11.3 million tonnes during April-August from 13.4 million tonnes in the same period of the previous fiscal year, according to Petroleum Planning and Analysis Cell data. 

The decline came amid disruptions to LPG supplies following the West Asia conflict and a growing push to shift households towards PNG.

Petrol and diesel consumption, meanwhile, increased during the period, reflecting stronger mobility demand.

LPG Demand Falls as Petrol, Diesel Consumption Rises

Fuel consumption showed a mixed trend during April-August:

• LPG consumption fell 16% to 11.3 million tonnes from 13.4 million tonnes.

• Petrol consumption rose 6.4% to 18.9 million tonnes from 17.8 million tonnes.

• Diesel consumption increased 4.3% to 40.5 million tonnes from 38.9 million tonnes.

• ATF consumption remained unchanged at 3.7 million tonnes.

LPG consumption also fell 16% in August to 2.4 million tonnes from 2.9 million tonnes a year earlier. Petrol consumption increased 7.9% in August to 3.8 million tonnes from 3.5 million tonnes, while diesel consumption rose 6.4% to 7 million tonnes.

India’s fuel consumption during April-August and August. Source: PPAC.

Government Pushes Shift From LPG to PNG

The petroleum ministry has asked states and Union Territories to provide district-level support to accelerate the shift of households from LPG to PNG.

The ministry has also sought nodal officers to coordinate with gas distributors and oil marketing companies. It sees PNG as a safer, cleaner and more efficient cooking fuel, while the shift could reduce the logistics burden associated with LPG distribution.

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US Emerges as Key LPG Supplier to India

India's LPG import basket has changed during the first 8 months of 2026, as supplies from key Gulf suppliers declining while shipments from the US increased.

According to Kpler, US supplied 276,000 tonnes of LPG to India in August, while imports from UAE stood at 68,000 tonnes.

India imports 60% of its LPG requirements, with 90% previously coming from Gulf countries through the Strait of Hormuz. Following regional disruptions, the US has emerged as the single-largest source of LPG supplies to India.

India Has Adequate LPG Supplies Through September

India has secured adequate crude and LPG supplies through September, easing immediate concerns over domestic availability.

However, any escalation in the Strait of Hormuz or the Red Sea could create challenges in securing future supplies. Analysts expect India's diversification of LPG sourcing to continue beyond the West Asia conflict, with refiners likely to expand their sourcing basket beyond the Gulf.

Conclusion: What Does This Mean for India’s Energy Sector?

The 16% decline in LPG consumption highlights the impact of supply disruptions and the shift towards PNG. Meanwhile, higher petrol and diesel consumption points to stronger mobility and agricultural demand. For India's oil and gas sector, the key development is the changing LPG supply mix as India diversifies beyond Gulf sources.