Amid Iran war, India sees a fall in LPG consumption:Petrol diesel sales increase on robust demand

LPG consumption across the country decreased by 17% in the first week of March. This occurred due to the war conditions in West Asia. According to data from 3 government companies IOCL, BPCL and HPCL (that boast of 90% market share), LPG consumption has decreased compared to the same period last year. LPG consumption during this period in March 2026 was 1.147 million tons, whereas it was 1.387 million tons during the same time last year. Consumption in March was 26.3% lower compared to the first fortnight of February. On the other hand, demand for petrol and diesel increased. Petrol sales increased by 13.2% to 1.5 million tons and diesel sales increased by 8.2% to 3.384 million tons. Meanwhile, according to a LocalCircles survey, food has become more expensive nationwide due to commercial gas shortage. Due to increased costs, 57% restaurants and 54% street vendors have raised their product prices within a week. Government’s focus on LPG supply, 12,000 raids conducted The central government said there is no shortage of domestic LPG. Supply is normal. Strict action against black marketing and hoarding continues. More than 12,000 raids have been conducted across the country so far. Over 15,000 cylinders have been seized. States have been directed to take strict action under the Essential Commodities Act. To reduce pressure on LPG supply, hotels, restaurants and other commercial consumers in urban areas are being encouraged to adopt PNG. States have been asked to expedite the approval process for laying city gas distribution pipelines. Digital system strengthening has led to online LPG booking increasing to nearly 94%. LPG production from refineries has increased by 38%. Why did such conditions arise? The United States and Israel jointly attacked Iran on February 28, 2026. Both countries conducted hundreds of airstrikes on Iran’s military bases, missile sites, nuclear facilities, and leadership. Iran’s Supreme Leader Ali Khamenei and several high officials were killed in these attacks. America named it Operation Epic Fury. Due to this war, tensions in the Strait of Hormuz disrupted supplies. India imports 80-85% of its LPG through this route. India is the world’s second-largest LPG importer and over 60% of LPG comes from abroad. This led to LPG scarcity-like conditions in India, but the Indian government continuously appealed to people to avoid rumors. The government stated that there is no shortage of LPG and oil in the country. Nanda Devi and Shivalik ships arrive in India with LPG India’s Nanda Devi ship crossed the Strait of Hormuz and reached Vadinar Port in Gujarat on Tuesday. The ship carried approximately 46,500 metric tons of Liquefied Petroleum Gas (LPG). Deendayal Port Authority Chairman Sushil Kumar Singh said that this gas will be transferred from one ship to another at sea. Earlier, the Indian ship Shivalik had already reached ‘Mundra Port’ on Monday carrying LPG. This ship has about 46,000 metric tons of LPG, which is equivalent to approximately 32.4 lakh domestic gas cylinders. 22 ships and 611 sailors still stranded in Hormuz According to the central government, 22 ships with Indian flags along with 611 sailors are in the Western Gulf. These include 6 LPG carriers, 1 LNG tanker, and 4 crude oil tankers. Common man’s budget impacted by increase in commercial cylinder prices The shortage of commercial LPG cylinders and rising prices have also affected the common man’s budget. More than 50% of people included in the LocalCircles survey said that restaurants and street vendors have increased food prices in a week. 57% people confirmed increase in restaurant prices. 54% say street vendors have increased prices by 10-25%. The survey gathered opinions from 38,000 consumers across 309 districts of the country. According to this, the burden of compensating for high fuel costs is being directly passed on to customers. Government intervention is needed immediately to reduce food prices. Impact: