Geopolitical conflicts weigh on imports as India's LPG supply gap continues to widen

India ranks as the world's third-largest consumer of liquefied petroleum gas. Due to regional conflicts, the country currently faces a daily LPG supply shortfall of 400,000 barrels, and domestic production capacity is struggling to fill the gap left by reduced imports.

According to statistics from energy intelligence firm Kpler, India's average daily LPG imports in April were only 377,620 barrels, shrinking by more than half compared to the import volume of 851,870 barrels in February. During the same period, average daily domestic production increased to 530,000 barrels, a rise of 75,000 barrels month-on-month.

Analysts at the firm stated that India's domestic LPG production capacity is approaching its upper limit. If import volumes fail to recover, the supply shortage will persist for the long term. Market traders revealed that a sharp rise in raw material costs has caused a slight decline in consumer demand, and finding suitable alternative fuels in the short term remains difficult.