TL;DR India consumed about 31 million tonnes of LPG in 2024–25 but produced only about 12.8 million tonnes domestically. The remaining two-thirds is imported, and most of those shipments pass through the Strait of Hormuz, one of the world’s most important oil shipping routes. About 92% of India’s LPG imports come from four Gulf countries: the UAE, Qatar, Saudi Arabia, and Kuwait, whose exports depend on the Hormuz route. The price of a 14.2 kg non-subsidised domestic LPG cylinder in Delhi has increased from Rs. 803 in March 2024 to Rs. 913 in March 2026, a 13.7% increase in two years.

Context
Liquefied Petroleum Gas (LPG) is the primary cooking fuel for more than 33 crore Indian households. While most consumers only see the delivery cylinder, the fuel inside it is part of a global supply chain.

Nearly two-thirds of the LPG consumed in India is imported, and more than 90% of those imports originate from four Gulf countries. These shipments pass through the Strait of Hormuz, a narrow maritime corridor between Iran and Oman.

Rising tensions involving Iran, Israel, and the United States have renewed concerns about the safety of this route. Any disruption to shipping through Hormuz can delay supplies or increase transport costs, both of which ultimately affect LPG availability and prices in India. This article looks at India’s LPG imports, domestic production, consumption trends, and cylinder price movements to understand why the conflict matters for Indian households.

Who Compiles This Data?
The data comes from the Petroleum Planning and Analysis Cell (PPAC), which operates under the Ministry of Petroleum and Natural Gas, Government of India. PPAC tracks monthly and annual data on LPG imports by volume and value, country-wise import shares, domestic production and consumption, and retail prices across metro cities.

Where can I download Clean & Structured Data on LPG?
Clean, structured, and ready-to-use datasets on LPG imports, production, consumption, and prices can be downloaded from Dataful.

Key Insights

India relies heavily on LPG imports
India imported 20.67 million tonnes of LPG in 2024-25, compared to 14.81 million tonnes in 2019-20. This represents a 39.6% increase in imports over five years. Most of these imports come from the Persian Gulf region, and nearly all shipments travel through the Strait of Hormuz, a 33-kilometre-wide waterway between Iran and Oman. Around 20% of global petroleum trade passes through this corridor every day, making it the world’s most important energy chokepoint.

For India, this route is critical. In 2024-25, 92.2% of LPG imports came from the UAE, Qatar, Saudi Arabia, and Kuwait, all of which rely on Hormuz for exports. If shipments through Hormuz were disrupted, tankers would have to take longer alternative routes, adding weeks to delivery times and significantly increasing freight costs.

The Persian Gulf dominates India’s LPG supply
India imports LPG mainly in two chemical forms:

• Propane (HS Code 271112)

• Butane (HS Code 271113)

These gases are blended and then filled into domestic and commercial cylinders. Over the last five years, the composition of India’s suppliers has shifted.

The UAE’s share of India’s LPG imports rose sharply from 22% in 2019-20 to 40.5% in 2024-25. Meanwhile, Qatar’s share declined from 30.9% to 22%, and Saudi Arabia’s share fell from 26.4% to 15%.

Three patterns stand out from this shift:

• The UAE alone now supplies 2 out of every 5 tonnes of LPG imported by India.

• Qatar, Saudi Arabia, and Kuwait together account for another 51.7% of imports.

• Non-Gulf suppliers such as the United States and Australia account for only 7.8%.

This means India’s LPG supply remains highly concentrated in a single geographic region, making it vulnerable to disruptions affecting the Strait of Hormuz.

Domestic production has barely changed
India produces LPG mainly as a by-product of crude oil refining and natural gas processing at facilities operated by ONGC, Oil India, and private sector refineries.

However, production has remained almost unchanged for years. India produced 12.82 million tonnes in 2019-20 and 12.79 million tonnes in 2024-25, effectively no growth over five years.

During the same period, LPG consumption increased significantly. As a result, the gap between domestic supply and demand has widened. The supply deficit increased from 13.5 million tonnes in 2019-20 to 18.5 million tonnes in 2024-25, a 37% rise in five years.

India consumed 31.32 million tonnes of LPG in 2024-25, equivalent to roughly 2.2 billion standard 14.2 kg cylinders in a year. Consumption has steadily increased from 26.33 million tonnes in 2019-20, representing a 19% rise over five years. The biggest increase occurred in 2024-25, when consumption grew 5.6% year on year, adding 1.66 million tonnes in a single year.

A major driver behind this growth is the expansion of LPG access under the Pradhan Mantri Ujjwala Yojana (PMUY), which has provided millions of rural households with LPG connections. India now has more than 33 crore active domestic LPG connections, which continues to push demand upward.

LPG cylinder prices reflect global shocks
Retail LPG prices closely follow global energy market trends. In Delhi, the 14.2 kg non-subsidised domestic cylinder reached a peak of Rs. 1,103 in March 2023. Prices then dropped to Rs. 803 in March 2024, a 27.2% decline in one year. Prices have since increased again, reaching Rs. 913 in March 2026, a 13.7% rise from the 2024 low, though still 17.2% below the 2023 peak.

A similar pattern appears across all four metro cities.

Prices across all four metro cities follow the same trajectory. The variation between cities reflects differences in state taxes and distribution costs, with Kolkata and Chennai consistently priced slightly higher than Delhi and Mumbai. Prices tend to be slightly higher in Kolkata and Chennai due to differences in state taxes and distribution costs.

The sharp 2022-23 price spike was driven by global energy market disruptions following Russia’s invasion of Ukraine and changes in Saudi Arabia’s contract prices.

Why Does It Matter?

LPG replaced firewood, kerosene, and dung cakes as the main cooking fuel for hundreds of millions of Indian households. This shift has brought significant health and environmental benefits, including lower indoor air pollution and reduced respiratory disease.

However, the data highlights three structural risks.

• India’s dependence on LPG imports is structural. Domestic production has remained flat while demand continues to grow.

• Supply is highly concentrated geographically. With more than 92% of imports coming from four Gulf countries, any disruption in the Strait of Hormuz could affect the majority of India’s supply.

• Global price shocks quickly affect retail LPG prices, which directly impact household budgets.

Addressing these vulnerabilities may require building strategic LPG reserves, increasing domestic gas production, and diversifying import sources beyond the Gulf region.

Key Numbers (from 2019-20 to 2024-25)

LPG Import Quantity (in million tonnes):

• 2019-20: 14.81

• 2021-22: 17.04

• 2023-24: 18.51

• 2024-25: 20.67

LPG Domestic Production (in million tonnes):

• 2019-20: 12.82

• 2021-22: 12.24

• 2023-24: 12.78

• 2024-25: 12.79

LPG Domestic Consumption (in million tonnes):

• 2019-20: 26.33

• 2021-22: 28.25

• 2023-24: 29.66

• 2024-25: 31.32

Country-wise share of imports in 2024-25:

• UAE: 40.5%

• Qatar: 22.0%

• Saudi Arabia: 15.0%

• Kuwait: 14.7%

• Others: 7.8%