OPEC Projects India’s LPG Demand to Double Over Next 25 Years
The global outlook for liquefied petroleum gas (LPG) is notably shifting, with projections estimating that India’s LPG consumption will double to 2 million barrels per day (mb/d) by 2050, as highlighted in OPEC’s World Oil Outlook 2026. This growth is driven predominantly by the residential sector, which utilizes LPG for cooking and accounts for nearly 90% of total demand. The expansion of India’s petrochemical sector is also contributing significantly to the increasing consumption of LPG, positioning it as a critical component of the country’s energy landscape.
This rising demand for LPG will have direct implications for the common citizen, particularly for the over 33.50 crore households relying on it for cooking. The anticipated growth of around 4.5% in LPG consumption in the current financial year ending March 2027 may lead to increased accessibility and potentially lower prices due to greater supply dynamics. As residential energy access improves, this can reduce reliance on traditional biomass, thereby fostering cleaner cooking alternatives and promoting public health initiatives. Additionally, the market may witness an uptick in investments within the LPG infrastructure and distribution sectors to meet growing needs.
Looking forward, the Indian government and the RBI must consider strategic approaches to ensure the sustainable growth of LPG consumption while nurturing the petrochemical sector’s development. OPEC’s projections suggest that long-term oil demand growth will be fueled by regions such as India, where a substantial increase of 8.1 mb/d is expected. Policymakers may prioritize enhancing pipeline infrastructure, improving supply chain efficiencies, and promoting alternative energy solutions that integrate LPG use, all of which would be essential for maintaining energy security and meeting the rising demand. Additionally, these steps can foster economic growth while addressing environmental considerations associated with fossil fuel consumption.
Source: The Hindu
(Expert Note: This report was independently prepared by the Wealthova Economy team.)