India's LPG Supply Chain
Domestic Production vs. Import Dependence
LPG (Liquefied Petroleum Gas) — a mixture of propane and butane — is India's primary cooking fuel, reaching approximately 320 million household connections under the Pradhan Mantri Ujjwala Yojana (PMUY) and other schemes. The gap between domestic production and consumption makes India structurally vulnerable to import disruptions.
- India's LPG consumption in FY2025: 31.3 million tonnes.
- Domestic production: approximately 12.8 million tonnes — less than 41% of demand.
- Import gap: ~18.5 million tonnes, predominantly from Saudi Arabia, UAE, and Qatar, all of which export via the Strait of Hormuz.
- The government order redirects domestically produced propane and butane streams (currently partially diverted to petrochemicals) back to LPG, boosting domestic availability.
- PMUY has connected approximately 103 million below-poverty-line households to LPG since 2016 — making LPG supply security a direct welfare and social equity issue.
- US Gulf Coast LPG imports (2.2 million tonnes in 2026) represent an explicit diversification away from Gulf-dependent supply chains.
● Tracked since March 06, 2026 · last seen March 23, 2026 · updates as the daily brief publishes
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