India’s LPG customer base drops 6.2 million amid fuel crisis

India's domestic LPG customer base has declined for the first time in over a decade, with around 6.2 million households dropping off between April and August this year, according to estimates. The loss is not being offset by a shift to piped natural gas, raising questions about how these families are cooking. Oil marketing companies are absorbing deep losses of Rs 300 per cylinder on LPG sales, with daily fuel marketing losses exceeding Rs 500 crore.

India sourced close to 90% of its LPG imports from West Asia in 2025, but supplies were hit hard by the crisis in the region. In March, the government invoked emergency measures to reroute petrochemical feedstocks from industry to households. India then turned to the US, which supplied around 53% of LPG imports in July and August, but US supplies have since crashed by about 70% compared with August. The UAE has again become the largest supplier, even as large tenders have been issued for US imports in 2027, despite refiners' limited appetite for long-distance purchases.

The government has made Aadhaar authentication compulsory for buying subsidised domestic cooking gas, adding another layer of friction. Imports now account for 66% of India's LPG consumption. The outcome of the West Asia conflict remains uncertain, leaving India to navigate volatile supply options.