New Delhi: Liquefied Petroleum Gas (LPG) sales in India’s industrial and commercial sectors fell to a record low in March 2026, mainly due to a sharp decline in imports caused by geopolitical tensions in West Asia. According to data from the Petroleum Planning and Analysis Cell (PPAC), non-domestic LPG consumption dropped by 48% year-on-year and 59% compared to February, reaching just 1.13 lakh tonnes — the lowest level ever recorded.
The fall in supply has been linked to disruptions in the Strait of Hormuz, a critical global shipping route through which a majority of India’s LPG imports are transported. Due to the ongoing conflict in West Asia, shipments were significantly affected, forcing the government to prioritize domestic household supply over commercial demand.India imports nearly 60% of its LPG requirements, with about 90% typically passing through the Strait of Hormuz. In March, imports dropped sharply from 2.04 million tonnes in February to 1.12 million tonnes, marking a 45% decline. Daily imports also fell from around 54,000 tonnes to 30,000 tonnes.
Domestic LPG consumption also showed a downward trend. Household usage declined by 7.8% year-on-year to 25.78 lakh tonnes, the lowest in the current financial year. Overall LPG consumption fell 16% month-on-month and 13% year-on-year to 2.38 million tonnes, the lowest level recorded in the past 21 months.India currently has over 33 crore LPG connections, many under the Pradhan Mantri Ujjwala Yojana, along with more than 25,000 distributors nationwide.