Surge in Petrol-Diesel Sales but Sluggish Gas: Why Has LPG Consumption Dropped?

While sales of petrol and diesel saw an increase in September compared to the previous year, LPG consumption witnessed a significant decline. Let’s explore the reasons behind this drop in LPG consumption.

It is well known that various fuels are essential for daily life; for instance, LPG cylinders are used in households, while petrol and diesel are required for vehicles to commute to work or travel elsewhere. The key question arises: if these fuels are integral to people’s daily lives, why have their consumption trends diverged?

In fact, while the demand for petrol and diesel has risen, LPG consumption has seen a sharp decline. This raises the question: what exactly is driving this trend? Why have petrol and diesel sales increased while LPG consumption has fallen?

A Look at the September Figures

According to preliminary data from the Petroleum Planning and Analysis Cell (PPAC), there has been a significant variance in the sales figures for LPG, petrol, and diesel in September compared to the same month last year.

How Much Did LPG Sales Decline?

LPG consumption dropped by 9.15 percent compared to the previous year, falling to 2.64 million tonnes. This represents a substantial decline in consumption.

The pressing question remains: why has LPG consumption decreased?

What Are the Reasons Behind the Drop in LPG Consumption? Ongoing tensions in the Middle East significantly impacted gas supplies in the country. Since India imports a large portion of its LPG, these tensions strained availability and supply, leading to price hikes for LPG cylinders and an extension of the time interval required between refill bookings. Consequently, the government is now taking significant steps to reduce reliance on LPG.

Rise in Petrol and Diesel Sales

Regarding diesel, sales rose by 4.86 percent year-on-year, reaching 7.12 million tonnes.
Petrol sales also saw an increase; compared to the previous year, sales grew by 7.21 percent to reach 3.64 million tonnes.
In essence, while LPG consumption has declined, sales of petrol and diesel have increased.

Is LPG Usage Declining?

In September, LPG consumption in the country fell by 9.15 percent year-on-year to 2.64 million tonnes. However, this does not necessarily imply that households have reduced their actual usage of LPG. A vast number of people across the country still rely on standard 14.2 kg domestic LPG cylinders for cooking. That said, one reason for the drop in consumption compared to last year is the impact that Middle East tensions had on availability and supply.