LPG Crisis: India consumes 30 million tonnes of LPG annually; learn about the steps taken since the Iran War.

Middle East Tensions: On March 7, the government had decided to increase the price of domestic LPG cylinder by Rs 60 per cylinder, after which its price in New Delhi has increased to around Rs 913.

 

 

What is the source of LPG and how big a buyer is India?

India's LPG Productions: Rising tensions in the Middle East have increased uncertainty in the global energy market. Following threats from Iran, oil and gas supplies through the vital Strait of Hormuz are feared to be affected. This impact is also being felt in India, where the supply of commercial LPG cylinders has been limited. In Mumbai, this shortage has forced the closure of approximately 20 percent of hotels.

How big a buyer of LPG is India?

In such a situation, it is important to understand how big a consumer of LPG India is and what steps have been taken to deal with the current crisis. India consumes more than 30 million tonnes of LPG. India has implemented the Essential Commodities Act to maintain the supply of LPG. Every year, about 31.2 million tonnes (about 31.3 million tonnes) of LPG is consumed in the country. Out of this, about 60 percent of the gas is imported, while about 40 percent i.e. about 12.4 million tonnes of LPG is produced in the country itself.

The share of 14 kg cylinder in domestic use is about 87 percent, while the share of 19 kg cylinder in the commercial sector is about 13 percent.

From which countries does LPG come?

A major portion of India's LPG supply comes from West Asia. This region accounts for approximately 80 percent of total gas imports. Of this, approximately 26 percent comes from the United Arab Emirates, 22 percent from Qatar, and about 22 percent from Saudi Arabia, while the remaining 33 percent is imported from other countries. How many consumers in India? According to the data of March 2026, there are approximately 33.08 crore active LPG consumers in India.

On March 7, the government decided to increase the price of domestic LPG cylinders by ₹60 per cylinder, bringing the price to approximately ₹913 in New Delhi. Currently, approximately 105 million people are beneficiaries of the Pradhan Mantri Ujjwala Yojana. Under this scheme, they receive a subsidy of ₹300 per cylinder, which translates into a total payment of approximately ₹613 per cylinder.