LPG slump hits plants

India’s cooking-gas use fell sharply in March as war-linked supply disruptions from West Asia squeezed deliveries across India. (thehindu.com) Official data put March liquefied petroleum gas consumption at 2.379 million tonnes, down 12.8% from 2.729 million tonnes a year earlier. Bulk LPG sales, the segment used by many commercial and industrial buyers, fell 75.5%. (thehindu.com) The squeeze had been building for weeks. Preliminary industry data cited by The Hindu showed LPG demand in the first half of March at 1.147 million tonnes, down 17.3% from the same period in 2025 and 26.3% from the first half of February 2026. (thehindu.com) Liquefied petroleum gas is the bottled fuel used in home cylinders, restaurant kitchens and some factories. India imports a large share of it, and The Hindu reported the West Asia conflict exposed that dependence as commercial supplies tightened first. (thehindu.com) New Delhi moved to protect households before businesses. The Petroleum Ministry said on March 8, 2026 that refineries and petrochemical plants were ordered to maximize LPG output by diverting propane, butane, propylene and butenes streams into the LPG pool. (pib.gov.in) The government then issued a Natural Gas Control Order on March 9, 2026 under the Essential Commodities Act to manage supplies and shield priority users. Petroleum Minister Hardeep Singh Puri told the Lok Sabha on March 12 that the aim was to maintain availability of petroleum products and protect energy security. (pib.gov.in 1) (pib.gov.in 2) By March 18, the government said domestic LPG production had increased 40% and offered States and Union Territories an extra 10% allocation of commercial LPG if they pushed reforms that move users toward piped natural gas. It also said city-gas distributors had been directed to speed up household piped-gas connections. (pib.gov.in) That left industrial and commercial users carrying more of the shortage. The Hindu reported that hotels, restaurants and some mining and manufacturing operations were switching to alternative fuels as commercial LPG supplies were cut to keep domestic cylinders flowing. (thehindu.com 1) (thehindu.com 2) For plants that use LPG as a steady heat source, that means rescheduling batches, changing burners or buying substitute fuels at short notice. The government said on March 15 that refineries were operating at high capacity and that steps had been taken to keep petroleum products and LPG available even after the closure of the Strait of Hormuz. (thehindu.com) (pib.gov.in) March’s consumption drop shows where India drew the line: kitchen cylinders were protected first, and factories were left to absorb more of the volatility. (thehindu.com)