The Impact of Inflation on LPG Refills! A Startling Revelation About LPG Consumption

Inflation has hit LPG particularly hard. Data indicates a significant drop in LPG cylinder consumption, while the consumption of petrol and diesel has risen.

Startling figures regarding LPG (cooking gas) consumption in the country have emerged. In August 2026, India's LPG consumption fell by 16.15% compared to the previous year. According to preliminary data from the Petroleum Planning and Analysis Cell, LPG consumption stood at 2.42 million tonnes in August, down from 2.89 million tonnes in August 2025—a decline of approximately 0.47 million tonnes (4.7 lakh tonnes) over the year.

Why has LPG consumption declined?

This drop in LPG consumption comes at a time when the country remains heavily dependent on imports for its supply. Supply disruptions linked to the West Asia crisis and issues in the Strait of Hormuz have curtailed LPG availability. This has impacted consumption patterns over the past few months; essentially, demand has weakened amidst supply pressures and logistical challenges in delivering gas to consumers.

What do the figures for the last five months show?

The decline in LPG consumption is not limited to August alone. From April to August 2026, India's total LPG consumption fell by 15.89% to 11.29 million tonnes, down from 13.42 million tonnes during the same period last year. This indicates a sustained trend of declining LPG consumption over the past few months.

What is the reason?

Rising prices are not the sole reason for the drop in LPG consumption; supply constraints, import pressures, and reduced availability also play a role. The West Asia crisis has intensified pressure on LPG supplies, affecting domestic usage. Meanwhile, the government has initiated efforts to expand PNG (Piped Natural Gas) connections in cities to reduce reliance on LPG.

Demand for Petrol and Diesel Rises

While LPG consumption has seen a significant decline, the demand for petrol and diesel has increased. In August, petrol consumption in the country rose by 7.88% to 3.82 million tonnes; it stood at 3.54 million tonnes in August of the previous year. Meanwhile, diesel consumption increased by 6.46% to reach 7 million tonnes, up from 6.58 million tonnes in August of the prior year.