LPG sales in India experienced a significant decline of 19% year-on-year in May, as reported by the Petroleum Planning and Analysis Cell. The sales volume decreased to 2.1 million tonnes from 2.6 million tonnes in the same period last year. This drop is largely due to government-led demand management measures and disruptions in supply flows.
Supply Disruptions and Government Measures
The Indian government, heavily reliant on West Asian countries for LPG supplies, implemented restrictions on LPG supplies to the commercial sector. Measures included cracking down on grey market sales, checking diversions, and increasing the waiting period for refills to manage demand effectively.
"The decline was largely due to govt-led demand management measures amid disruptions in supply flows and seasonal variations," officials noted.
Comparative Data
| Month | LPG Sales (MT) | Year-on-Year Change |
|---|---|---|
| May 2025 | 2.6 | - |
| May 2026 | 2.1 | -19% |
Demand Trends
While LPG sales declined, petrol and diesel consumption saw marginal increases of 2.8% and 1%, respectively. This growth was driven by strong demand from transportation, agriculture, freight movement, and rural activity during the peak summer season, as stated by Hindustan Petroleum.
Outlook
The outlook for LPG sales remains uncertain, with potential further disruptions in supply and ongoing government measures likely to impact future sales. Key data releases from the US EIA and IEA will be closely monitored for insights into global energy market trends.
