How Much Did LPG Consumption in India Increase Between FY17 and FY25?
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Synopsis
India has witnessed a remarkable surge in LPG consumption, with a growth of over 44% in just eight years. With projections indicating continued growth, the increasing reliance on LPG for cooking and its expanded usage in commercial sectors highlight the changing energy landscape in the country. This report dives into the factors driving this demand and the implications for domestic supply.
Key Takeaways
- LPG consumption in India increased by over 44% from FY17 to FY25.
- The average refills for PMUY beneficiaries rose to 4.5 annually.
- Commercial use of LPG now accounts for 16% of demand.
- Domestic LPG production grew to 12.8 MMT, but demand is outpacing supply.
- India relies on imports for 55-60% of its LPG needs.
New Delhi, Nov 26 (NationPress) The consumption of liquefied petroleum gas (LPG) in India has surged by more than 44 percent, reaching 31.3 million metric tons (MMT) in fiscal year 2025, up from 21.6 MMT in fiscal year 2017. Projections indicate it could climb to 33-34 MMT in fiscal 2026, driven by extensive household access and a rise in refill frequency, according to a report released on Wednesday.
The average number of LPG refills for beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) has increased to 4.5 refills per household per year in fiscal 2025, compared to 3.9 cylinders in fiscal 2017. This growth is supported by factors such as improved affordability, enhanced delivery systems, and a greater dependency on LPG for daily cooking energy needs.
For households not covered by Ujjwala, refill levels have remained consistent at 6-7 cylinders per household annually over the last five fiscal years.
The commercial and industrial usage of LPG has also risen, now accounting for 16 percent of total demand in fiscal 2025, up from 10 percent in fiscal 2017. This increase is attributed to greater use in sectors like food services, institutional kitchens, and small manufacturing units, broadening the demand spectrum and reducing the usual seasonal fluctuations seen in household use, as noted by Crisil Ratings in their report.
Domestic production of LPG has increased to 12.8 MMT in fiscal 2025 from 11.2 MMT in fiscal 2017. However, this rise in supply has not kept pace with the strong growth in national demand.
As a result, the domestic share of overall LPG availability has diminished over time.
According to the report, India’s LPG market heavily relies on imports, with 55-60 percent of demand being fulfilled through imports over the last decade, despite steady growth in domestic production.
The recent agreement between India and the US for 2.2 million tonnes per annum of long-term LPG supply represents a significant shift in supplier diversification, lessening the historical dependence on Middle Eastern sources.
"While the strategic benefits of this agreement are considerable, the landed cost sensitivities related to freight may influence the economics for oil marketing companies in the near future," the report stated.
Point of View
It's crucial to recognize the evolving landscape of energy consumption in India. The substantial growth in LPG usage reflects both socio-economic advancements and the government's commitment to improving energy accessibility. While this presents opportunities, the increasing reliance on imports raises questions about sustainability and energy security that need addressing.
NationPress
26/11/2025
Frequently Asked Questions
What factors contributed to the growth of LPG consumption in India?
The growth in LPG consumption can be attributed to better affordability, improved delivery networks, increasing household access, and a higher refill frequency, particularly among beneficiaries of the Pradhan Mantri Ujjwala Yojana.
How has the share of LPG used for commercial purposes changed?
The share of LPG used for commercial and industrial purposes has increased to 16% in fiscal 2025 from 10% in fiscal 2017, driven by higher adoption in various sectors.
Is India still heavily reliant on LPG imports?
Yes, India continues to rely on imports for 55-60% of its LPG demand, despite a rise in domestic production.
What is the projected LPG consumption for fiscal 2026?
LPG consumption in India is projected to reach 33-34 MMT in fiscal 2026.
What does the recent India-US LPG agreement entail?
The India-US LPG agreement involves a long-term supply of 2.2 million tonnes per annum, marking a significant shift in supplier diversification.
