Mumbai: A woman waits to avail an LPG cylinder amid disruptions in supplies due to the West Asia war, in Mumbai, Maharashtra, Monday, April 6, 2026. (PTI Photo)(PTI04_06_2026_000175A)
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India’s fuel consumption climbed to 21.37 million metric tons in
March, its highest since December, while liquefied petroleum gas consumption declined amid a
supply crisis, data showed on Monday.
Fuel consumption rose from 20.19 million metric tons in February and marked a 3.2% gain from
March last year. Data released by the oil ministry’s Petroleum Planning and Analysis Cell (PPAC) showed that
LPG consumption fell 12.8% from a year earlier to 2.38 million tons.
The country is facing its worst LPG supply crisis in decades due to shipping disruptions in
the Strait of Hormuz amid the U.S.-Israeli war with Iran. Iran responded to U.S. and Israeli attacks in February by effectively closing Hormuz, a conduit for about a fifth of the world’s oil and natural gas supply.
India buys about 90% of its LPG imports – mainly used for cooking – from the Middle East.
The government has invoked emergency powers to ensure that limited LPG supplies are directed
toward actual household use and will halt supplies after three months for customers linked to
piped gas connections.
Data showed sales of gasoline was up 12.2% from February and rose 7.6% from a year earlier.
Meanwhile, diesel consumption was up 8.1% from a year earlier and gained nearly 14%
month-on-month.
Indian state refiners have not raised the retail prices of gasoline and gasoil to cushion
customers from a spike in global markets. Indian refiners are facing a revenue loss of more than
50 rupees per litre on gasoil and about 20 rupees on gasoline, industry sources said.
Naphtha sales fell 8.1% year-on-year, while consumption of bitumen, used primarily in road
construction, rose 10.4% from February but was down about 7% on an annual basis.
Fuel oil usage jumped more than 31% from a year earlier.
Late last month, India bought its first cargo of Iranian LPG in years after the U.S.
temporarily removed sanctions on Tehran’s oil and refined fuels, LSG trade flows and three
industry sources said.
Published on April 7, 2026
