India Set To Import 20.82 Million Tonnes Of LPG In FY27 Amid Rising Demand

India’s LPG demand continues to grow steadily, driven by household cooking fuel requirements and industrial usage. The PPAC estimates total consumption at 34.69 million tonnes in FY27, a 4.5 percent increase from FY26. With domestic production unable to meet demand, imports will remain a critical supply source.

Consumption Trends

In FY26, India consumed approximately 33.21 million tonnes of LPG, of which imports accounted for 20.50 million tonnes during the April–February period. This represented nearly 62 percent of total consumption, underscoring the country’s dependence on imported LPG to meet energy needs.

Import Forecast For FY27

The PPAC projects imports of 20.82 million tonnes in FY27, slightly higher than the previous year. This increase aligns with rising demand from households, where LPG remains the primary cooking fuel, and from industries such as petrochemicals and manufacturing.

Global Market Influence

India’s LPG imports are sensitive to global price fluctuations, shipping costs, and geopolitical developments. With international energy markets facing volatility, India’s import bill could rise, impacting subsidies and consumer prices. The government continues to balance affordability with supply security.

Domestic Production And Policy

Despite efforts to boost domestic LPG production, India’s output remains insufficient to meet demand. Policy initiatives such as expanding LPG coverage under the Pradhan Mantri Ujjwala Yojana have increased household consumption, further widening the supply gap. The government is also exploring diversification of import sources to reduce risk.

Key Highlights

• India to import 20.82 million tonnes of LPG in FY27
• Total consumption projected at 34.69 million tonnes, up 4.5 percent
• FY26 imports stood at 20.50 million tonnes, covering 62 percent of demand
• Household and industrial demand driving growth in LPG usage
• Global price volatility and subsidies remain key challenges

Sources: The Hindu BusinessLine, Petroleum Planning & Analysis Cell (PPAC)