India's LPG consumption in the first half of 2026 saw a significant decline of 8% year-on-year, primarily attributed to disruptions caused by the ongoing West Asia conflict. This conflict impacted critical import routes, particularly through the Strait of Hormuz, limiting the availability of liquefied petroleum gas across the nation.
Provisional data from the Petroleum Planning and Analysis Cell (PPAC) indicates that India consumed approximately 14.74 million tonnes (mt) of LPG between January and June 2026, a decrease from 15.95 mt recorded during the same period last year. India relies heavily on imports for nearly 60% of its LPG requirements, with a substantial 90% originating from the West Asia Gulf region.
Impact of Supply Constraints
The fall in consumption was a direct consequence of these supply constraints rather than a reduction in demand. The vulnerability of India's energy supply became apparent as most cargoes traverse the strategic Strait of Hormuz. May 2026 marked a particularly low point, with LPG consumption dropping to around 2.13 mt, the lowest monthly level in over five years, despite LPG being the primary cooking fuel for over 33.5 crore households.
While overall consumption in June fell nearly 17% year-on-year, there was a month-on-month recovery of over 2% as additional LPG cargoes, notably from the United States, began reaching Indian ports. The US emerged as India's largest LPG supplier between March and June, helping to alleviate some of the pressure.
Supply Restoration and Price Adjustments
The Ministry of Petroleum and Natural Gas has confirmed that domestic LPG, piped natural gas (PNG), and compressed natural gas (CNG) supplies are now maintained at 100% nationwide. Commercial LPG supplies, which were temporarily curtailed to prioritize household consumers during the crisis, have also been restored to pre-crisis levels. Online refill bookings have recovered to 98%, with no reports of stock-outs from LPG distributorships.
Reflecting the improved supply situation, Indian Oil announced a reduction in the price of 19-kg commercial LPG cylinders by ₹173, effective July 1, bringing the price to ₹183.50 in major cities. However, the prices of 14.2-kg domestic LPG cylinders remain unchanged.
Broader Energy Security Measures
The improving outlook coincides with a softening of global crude oil prices. Union Petroleum and Natural Gas Minister Hardeep Singh Puri indicated that retail petrol and diesel prices could see reductions if international crude prices remain low in the coming weeks. He noted that oil marketing companies are currently processing crude purchased during the peak of the West Asia conflict, when prices were considerably higher, thus delaying the impact of current lower global prices on consumers.
Minister Puri also underscored the importance of strengthening India's energy security by expanding crude oil and fuel storage capacity. Currently, India's crude inventories are sufficient for approximately 76-80 days. The government plans to build larger strategic reserves, taking advantage of favorable global oil prices.