New Delhi, May 23: Amidst a huge fall in import of fuel from West Asia, LPG consumption in India declined sharply last month in comparison.
According to the government data, household LPG sales fell 11 per cent year-on-year to 1,982 thousand metric tonnes (TMT) in April, down from 2,229 TMT in the corresponding month last year.
There was also a reduction of 10 per cent in the sale of commercial LPG cylinders which are primarily used by eateries, offices, industrial canteens, malls, educational institutions and hospitals.
Their sales declined to 187 TMT in April against 208.5 TMT a year earlier.
The sharpest impact of the supply crunch was seen in industrial LPG consumption, which plunged 82 per cent year-on-year to 11.9 TMT in April.
The shortage forced several industrial users to shift to alternatives such as fuel oil and natural gas. Over the past year, many factories had increasingly moved towards LPG as softer crude oil prices made it cheaper than relatively expensive natural gas.
Meanwhile, state-run oil companies increased LPG supplies to auto LPG vehicles by 86 per cent year-on-year to 10.8 TMT in April, largely to compensate for reduced availability from private-sector suppliers.
Direct LPG imports by private players also dropped 44 per cent to 19.5 TMT during the month.
Overall LPG sales in April declined 13 per cent year-on-year, with northern India witnessing the steepest drop of 17 per cent, reflecting the severe impact of supply disruptions linked to the Hormuz crisis.
India has suffered a huge shortfall in the import of petroleum products from West Asia in view of the ongoing tensions which started with the war on Iran launched by the US and Israel on February 28.
The conflict has resulted in the blockade of the Strait of Hormuz, the critical maritime channel through which India receives most of crude oil supplies. (BVI)
