Fuel Crisis: India’s LPG Consumption Drops as Middle East Tensions Hit Supplies

Janani G 23 hours ago National News

India’s fuel market is facing a significant challenge as Liquid Petroleum Gas (LPG) consumption plummeted by 13% this March compared to the previous year. The sharp decline is largely attributed to supply chain disruptions caused by the ongoing West Asia conflict and the closure of the critical Strait of Hormuz.

According to the latest data from the Petroleum Planning and Analysis Cell (PPAC), the shortage has impacted every sector, though the government has moved to prioritize home kitchens. Household consumption saw an 8.1% dip, while the commercial sector—including hotels and restaurants—took a much harder hit with a 48% drop. The most dramatic decline was seen in the industrial sector, where bulk LPG usage crashed by a staggering 75.5%.

To manage the crisis, authorities have diverted fuel resources from petrochemical plants to boost domestic LPG production. Despite this difficult month, official reports show that overall LPG usage for the 2025-26 fiscal year actually grew by 6%, suggesting that the current slump is a temporary result of global geopolitical pressure.

While international conflicts continue to strain energy imports, India's strategic shift toward boosting domestic output remains a key step in stabilizing the market. With proactive management and a focus on essential needs, the nation aims to navigate these global headwinds and restore steady energy supplies for all citizens.