India’s LPG consumption rises 3.2% in August to six-month high

India's liquefied petroleum gas (LPG) consumption surged by 3.2% in August, reaching a six-month high of around 2.42 million tonnes (mt) on a provisional basis. This increase was driven by the gradual reduction in conflict intensity in West Asia and the removal of restrictions on LPG supply to commercial consumers. However, overall usage declined by more than 14% annually.

This is the third consecutive month of rising LPG consumption in India, following the government's decision to increase supply from the US and the Middle East Gulf (MEG) region as the conflict in West Asia waned. The conflict had previously led to a 14% Y-o-Y decline in LPG consumption during the first half of 2026, as the Strait of Hormuz remained closed due to the conflict, completely blocking supply of the key cooking fuel.

Around 90% of LPG consumption is by households, while the remaining is by commercial and industrial (C&I) consumers. In August, petrol consumption surpassed 3.824 million tonnes (mt), marking an 8% Y-o-Y growth, but was almost flat month-on-month. Diesel consumption fell below the 8 mt mark for the first time since March 2026, slipping 13.5% M-o-M to around 7 mt, but grew 6.5% annually.

The use of diesel generally declines during monsoons due to reduced industrial and mining activity, although Kharif sowing activity provides some support.