LPG consumption declines 16% in August, petrol-diesel accelerate amid erratic monsoons
India's LPG consumption dropped by 16% in August due to a shift toward piped natural gas, while petrol and diesel demand rose. The increase in diesel consumption is attributed to higher usage of irrigation equipment and generators caused by erratic monsoon rainfall.
Why it matters
The data provides insight into shifting energy consumption patterns and the economic impact of climate-related agricultural challenges.
India’s LPG (liquefied petroleum gas) consumption declined about 16.2% in August from a year earlier, according to provisional government data, as a growing shift toward piped natural gas (PNG) weighed on demand for cooking fuel.
Meanwhile, petrol and diesel consumption rose 7.9% and 6.5%, respectively, year-on-year (YoY) in August. The increase in diesel demand was driven by greater use of irrigation equipment amid below-normal monsoon, while higher mobility and transportation needs also supported fuel consumption.
Consumption of LPG in August slipped to 2.424 million metric tonnes (MMT), according to provisional government data.
Speaking to The Hindu, Prashant Vashisht, Senior Vice-President at ratings agency ICRA, said persistent concerns over the availability of the bottled hydrocarbon gas coincided with a sharp rise in PNG connections, including among industrial consumers.
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