India's LPG Consumption Hits Six-Month High in August, Commercial Curbs Lifted

India's liquefied petroleum gas (LPG) consumption bounced back in August 2026, climbing 3.2% month-on-month to a six-month high of 2.42 million tonnes. This uptick follows the government's mid-June decision to fully lift restrictions on commercial LPG, signalling an easing energy crunch and bolstering demand, particularly in the industrial and hospitality sectors. However, it's a mixed picture, as overall LPG consumption remains over 14% lower compared to August last year, reflecting ongoing market shifts and past supply challenges. The recent surge in consumption is strongly linked to improved supply conditions, with both US and Middle East Gulf suppliers stepping up shipments. While the US remains India's largest individual LPG supplier, Gulf nations like the UAE, Kuwait, Qatar, Iran, and Oman significantly ramped up their exports to India by over 44% month-on-month in August, regaining crucial market share after disruptions caused by the West Asia crisis earlier in the year. The lifting of commercial restrictions in June, which had been imposed during the peak of the crisis when the Strait of Hormuz faced blockades, has allowed businesses to return to pre-crisis consumption levels for packed LPG, though bulk LPG supplies are still at 50% of previous requirements. Looking ahead, the market will be watching whether this month-on-month recovery can translate into stronger year-on-year growth, especially as the Indian government continues to push for clean cooking fuels through schemes like the Pradhan Mantri Ujjwala Yojana, which offers subsidies for domestic cylinders. While the immediate outlook for commercial demand appears positive with eased restrictions, the long-term trends will depend on global supply stability, pricing, and the ongoing shift of some consumers to piped natural gas. India's strategy to diversify its LPG imports, including increasing long-term contracts with the US, will be crucial in navigating future geopolitical risks and ensuring a consistent energy supply for its vast consumer base.