India Liquefied Petroleum Gas (LPG) Market Overview, 2029

Liquefied petroleum gas (LPG) has been an important element of India's energy landscape since the 1970s. Initially centred in urban areas, its use has grown dramatically, particularly in rural areas, thanks to government initiatives such as the Pradhan Mantri Ujjwala Yojana (PMUY) launched in 2016. The extensive use of LPG has increasingly replaced traditional and polluting cooking techniques such as burning firewood or dung throughout the country. Today, LPG is a staple of Indian cooking, providing a cleaner and more convenient alternative to traditional fuels. India is the world's second-largest consumer of LPG, after only China. Despite its high consumption volume, per capita LPG usage in India remains relatively low, showing tremendous possibility for expansion. This shows that there is untapped potential in the Indian market, which presents prospects for growth and development. As India continues to urbanise and modernise, there is an increasing desire for cleaner and more efficient energy sources, with LPG emerging as a possible solution to address these changing needs. Both government programs and private sector activities are actively pushing the use of LPG throughout India. Government initiatives highlight the health and environmental advantages of utilising LPG over traditional fuels in order to create awareness and encourage widespread adoption. Furthermore, private companies use a variety of marketing platforms, including mass media and specialised campaigns, to promote their LPG brands and highlight value-added services. These promotional initiatives have a significant impact on customer perceptions and market demand for LPG products and services.

According to the research report “India Liquefied Petroleum Gas (LPG) Market Overview, 2029," published by Bonafide Research, the India Liquefied Petroleum Gas (LPG) market is projected to add more than USD 9 Billion from 2024 to 2029. Several reasons contribute to India's increased demand for LPG. Rising disposable incomes, increased urbanisation, and government subsidies such as PMUY have all played important roles in propelling this economic trajectory. However, the LPG sector in India confronts significant obstacles. Import dependency, which accounts for more than 40% of total supply, exposes the market to worldwide price volatility. Ensuring the secure storage and effective distribution of LPG throughout the wide breadth of the country presents logistical challenges. These difficulties demand strategic planning and infrastructure investment to reduce risks and maintain a smooth supply chain. In terms of legislation and regulations, the government has strict safeguards in place to ensure LPG safety. The Petroleum and Explosives Safety Organisation (PESO) is in charge of enforcing strict standards for cylinder manufacturing, storage, and distribution to protect customers and the environment. LPG subsidies also help to ensure affordability, especially for low-income households. However, questions about the efficient delivery of subsidies remain, emphasising the importance of streamlining subsidy processes to improve efficiency and transparency in subsidy distribution.

LPG is utilised across various applications, including domestic, residential, commercial, agricultural, industrial, transportation, refinery, and chemical sectors. In domestic and residential settings, LPG serves as a versatile energy source for heating, cooking, and other household needs, while in commercial applications, it is commonly employed for heating and powering various equipment and appliances. Agriculture relies on LPG for activities such as crop drying, pest control, and greenhouse heating. In industrial settings, LPG finds extensive use in manufacturing processes, space heating, and as a fuel for machinery and equipment. The transportation sector utilises LPG as an alternative fuel for vehicles, offering a cleaner-burning option compared to traditional gasoline or diesel. Within refineries, LPG is produced as a byproduct of the refining process, extracted through techniques such as crude oil distillation, catalytic cracking, and hydrocracking. Additionally, LPG can be sourced from associated gas, which is natural gas co-extracted with crude oil, or from non-associated gas reserves, where it is found independently of crude oil. This diversity in sources ensures a steady supply of LPG for various applications, supporting its widespread use across different sectors while also offering flexibility and resilience in the face of changing market conditions and demands.

The Liquefied Petroleum Gas (LPG) market is expected to grow significantly, reaching 34 million tonnes by 2030, mostly due to increased residential usage. Government programs like PMUY 2.0, which was implemented in 2021, play an important role in increasing demand by providing extra connections and making refills easier. These activities are critical in increasing access to clean cooking fuel, particularly in rural and underserved areas, thereby enhancing the quality of life for millions of families. The government's unwavering focus on developing LPG connections, particularly in rural regions, remains a primary priority, demonstrating its commitment to ensuring universal access to clean cooking fuel. However, concerns remain, particularly with rising global crude oil prices, which jeopardise the viability of current subsidy arrangements. As a result, there are conversations about future subsidy changes to reconcile affordability with fiscal considerations. Furthermore, safety concerns about LPG cylinder tampering and black marketing have pushed regulatory organisations to impose more stringent regulations to protect consumer interests and market integrity. The COVID-19 pandemic caused temporary supply chain difficulties, resulting in a transient rise in costs. However, the government acted quickly to lessen the impact, introducing subsidies and giving logistical support to assure the continuing availability of LPG. These actions contributed to market stability and a consistent supply of LPG to consumers across the country, demonstrating India's LPG sector's resilience in the face of external pressures.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029



Aspects covered in this report
• Liquefied Petroleum Gas (LPG) market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Application
• Domestic
• Agriculture
• Industrial
• Transportation
• Refinery
• Chemical

By Source
• Refinery
• Associated Gas
• Non-associated Gas

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Liquefied Petroleum Gas (LPG) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.