Context: India’s Liquefied Petroleum Gas (LPG) consumption has surged to 31.3 million metric tonnes (MMT) in FY25, driven by expanded household access under the Pradhan Mantri Ujjwala Yojana (PMUY) and growing commercial and industrial demand. With usage expected to reach 33–34 MMT in FY26, LPG continues to dominate India’s clean cooking energy transition.
About LPG
LPG is a compressed mixture of propane and butane (≈40:60) used for:
- Cooking (household sector)
- Industrial applications
- Food services and transport
It burns cleaner than biomass, kerosene, and coal, significantly reducing indoor air pollution.
Trends in India’s LPG Sector
1. Strong Growth in National Consumption
- FY17: 21.6 MMT
- FY25: 31.3 MMT
- FY26 (projected): 33–34 MMT
This represents one of the fastest-growing clean fuel transitions globally.
2. PMUY’s Transformational Impact
Under PMUY, household LPG coverage expanded across rural and low-income homes.
- Average refill consumption increased from 3.9 cylinders/year to 4.5 cylinders/year.
- Improved affordability, last-mile delivery expansion and behavioural shift strengthened LPG dependence.
The scheme dramatically reduced household smoke exposure and supported women’s health and safety.
3. Rising Commercial and Industrial Use
Commercial and industrial consumers increased their share of total LPG demand:
- Earlier: ~10%
- FY25: ~16%
Growth is driven by:
- Food service chains
- Institutional kitchens
- MSME clusters shifting away from solid fuels
4. Persistent Supply Gap and Import Dependence
Domestic LPG production increased modestly:
- FY17: 11.2 MMT
- FY25: 12.8 MMT
But imports rose sharply to ~20.7 MMT, keeping dependence at 55–60%.
India is currently the world’s second-largest LPG importer after China.
5. Import Diversification for Energy Security
- Middle East supplies dominate India’s imports (91–93%).
- The new India–US LPG agreement (2.2 MTPA) diversifies sourcing, reduces geopolitical exposure, and strengthens long-term energy security.
About Pradhan Mantri Ujjwala Yojana (PMUY)
A flagship central sector scheme by the Ministry of Petroleum & Natural Gas, launched in 2016, providing deposit-free LPG connections to women in low-income households.
Eligibility Groups
- BPL households
- SC/ST families
- Antyodaya beneficiaries
- Forest dwellers
- SECC-listed households
- Migrants
- Women in island territories
Note: Households without an adult woman are ineligible.
Achievements
- 10.33 crore LPG connections provided
- 238+ crore refills in 9 years
PMUY has significantly enhanced women’s health, reduced drudgery, and accelerated India’s adoption of clean cooking fuels.
Conclusion
India’s rising LPG consumption reflects both social welfare gains from PMUY and economic expansion.
However, persistent import dependence underscores the need for domestic production enhancement, diversification of suppliers, and a long-term transition toward cleaner alternatives like bio-LPG, ethanol-based fuels, and green hydrogen derivatives.