Demand for LPG in India increased in March amid the 21-day nationwide lockdown to curb the coronavirus spread. Preliminary data from the oil ministry showed demand rose 2% from 2.26 million tons a year ago to 2.31 million tons last month, but lower than a record of 2.45 million tons seen in January.
The increase is attributed to the national lockdown, which forces people to cook at home and cut their access to restaurants. LPG was the only fuel to show growth in demand amid the COVID-19 outbreak in India last month. Demand is expected to rise further in April, especially after the government announced three free refills to residents who are beneficiaries of the state-sponsored subsidy scheme.
India's LPG consumption is expected to rise by 6% to around 28 million tons in FY 2020-2021 ending March 31, from 26.4 million tons in the previous FY. Demand in FY 2019-2020 increased 6% year-on-year thanks to the subsidy scheme providing LPG access to 80 million low-income households. Each year, eligible Indian families receive a subsidy for 12 standard 14.2-kg cylinders, which account for almost 90% of the country's overall LPG consumption.
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Published on April 13, 2020 4:38 PM (GMT+8)Last Updated on April 13, 2020 4:38 PM (GMT+8)
