Press Release

India LPG Market is expected to grow at a CAGR of 4.1%

The India LPG market is rising due to increasing urbanization, government initiatives promoting cleaner cooking fuels, and growing consumer awareness of health and environmental benefits associated with using liquefied petroleum gas over traditional biomass and coal in the forecast period 2026-2030F.

According to TechSci Research report, “India LPG Market - Industry Size, Share, Trends, Opportunity, and Forecast 2030”, The increasing demand for LPG in the industrial and commercial sectors is another key driver of the India LPG market. As industries seek cleaner and more efficient energy sources to meet operational requirements, LPG has emerged as a favored alternative due to its versatility and effectiveness. Sectors such as manufacturing, hospitality, and food processing are increasingly adopting LPG for heating, cooking, and other energy-intensive processes. The push for sustainability and adherence to stricter environmental regulations compel businesses to transition from traditional fossil fuels to cleaner alternatives like LPG, which helps reduce their carbon footprint. Moreover, the ease of transportation and storage of LPG makes it an attractive option for businesses that require reliable energy supply without significant infrastructural investment. This trend is particularly pronounced in urban areas, where industrial activities are concentrated. As companies continue to prioritize energy efficiency and sustainability in their operations, the demand for LPG in these sectors is expected to grow, contributing significantly to the overall market expansion. The industrial and commercial adoption of LPG not only enhances operational efficiencies but also supports India's broader energy transition goals.

 

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The North region of India has emerged as the fastest-growing area in the LPG market, driven by a combination of government initiatives, increasing urbanization, and a rising awareness of the health benefits associated with cleaner cooking fuels. One of the primary catalysts for this growth has been the Indian government's focus on improving access to LPG through programs like the Pradhan Mantri Ujjwala Yojana, which aims to provide subsidized LPG connections to low-income households. This initiative has significantly enhanced the penetration of LPG in rural and semi-urban areas, where traditional cooking fuels, such as firewood and kerosene, have long been prevalent. As more households gain access to LPG, the region is witnessing a surge in demand, particularly among women, who are increasingly advocating for cleaner, safer cooking options for their families. Moreover, the North region encompasses densely populated urban centers such as Delhi, Chandigarh, and Haryana, where rapid urbanization has led to a greater reliance on modern energy solutions. The expanding urban middle class is seeking convenience and efficiency in their cooking practices, further driving LPG consumption. Additionally, the industrial sector in the North is also growing, with increased adoption of LPG for applications in manufacturing, food processing, and hospitality. The versatility and efficiency of LPG make it an attractive energy source for these industries, contributing to the overall demand in the region.

Infrastructure improvements have also played a critical role in bolstering the LPG supply chain in North India. The establishment of new bottling plants and distribution terminals has enhanced logistics and reduced the time taken to deliver LPG cylinders to consumers. These advancements ensure a more reliable supply, which is crucial for maintaining customer satisfaction and encouraging further adoption. Additionally, local partnerships with distributors and retailers are being strengthened to optimize last-mile delivery, ensuring that LPG reaches even the most remote areas efficiently. The increasing awareness of the adverse health effects linked to indoor air pollution has further accelerated the shift toward LPG. Families are becoming more conscious of the benefits of using LPG over traditional fuels, which produce harmful emissions. This growing health consciousness is not only fostering demand in households but is also prompting educational campaigns by both governmental and non-governmental organizations, promoting LPG as a safer alternative.

Based on Source, the India LPG market was predominantly driven by the crude oil distillation segment, which is expected to maintain its dominance throughout the forecast period. This segment benefits significantly from the country's robust refining capacity, where major refineries convert crude oil into various petroleum products, including LPG. With India being one of the largest importers of crude oil, the distillation process plays a crucial role in meeting the rising domestic demand for liquefied petroleum gas. The efficiency of refineries in processing crude oil into LPG ensures a steady supply, making it the most significant source in the Indian market. Additionally, the government's ongoing initiatives to enhance refining capabilities and improve infrastructure further bolster the reliance on crude oil distillation. While other sources, such as natural gas liquids (NGL) and liquefied natural gas (LNG) fractionation, contribute to the LPG supply, they are comparatively limited in volume and capacity. NGL and LNG fractionation processes offer alternative pathways for LPG production, but the infrastructure required for these processes is still developing in India. Furthermore, imports of LPG have been rising, but they often fluctuate based on global market conditions and pricing, making them less reliable than domestic production from crude oil distillation. As the demand for LPG continues to grow, particularly due to government programs promoting cleaner cooking fuels, the focus on enhancing crude oil distillation capabilities will remain paramount. Consequently, investments in refining technologies and processes will likely reinforce the dominance of this segment in the LPG market. Overall, as India seeks to balance energy security with sustainability goals, crude oil distillation will continue to be the backbone of the LPG supply chain, ensuring its leading position in the market for the foreseeable future.

 

Key market players in the India LPG Market are: -

  • Indian Oil Corporation Limited
  • Bharat Petroleum Corporation Limited
  • Hindustan Petroleum Corporation Limited
  • Reliance Industries Limited
  • GAIL (India) Limited
  • Mangalore Refinery and Petrochemicals Limited
  • Oil and Natural Gas Corporation Limited
  • Essar Oil Limited
  • Gujarat Gas Limited
  • Indraprastha Gas Limited


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“The India LPG market presents several promising opportunities for growth and innovation. Expanding rural electrification initiatives and government programs aimed at increasing LPG access can drive significant demand, particularly in underserved areas. Additionally, the rising emphasis on cleaner cooking fuels due to health and environmental concerns creates a strong market for LPG as a sustainable alternative. Technological advancements in smart LPG solutions, such as IoT-enabled monitoring systems, offer new avenues for enhancing consumer experience and operational efficiency. Furthermore, the growing industrial sector's shift towards cleaner energy sources presents substantial opportunities for LPG adoption in manufacturing and processing applications. Finally, strategic partnerships with renewable energy companies to produce bio-LPG can diversify product offerings and align with sustainability goals. Collectively, these factors position the LPG market as a vital component of India's energy transition strategy, fostering long-term growth and investment potential.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based Global management consulting firm.

India LPG Market By Source (Crude Oil Distillation, NGL & LNG Fractionation, Imports), By Application (Residential, Commercial, Industrial, Transportation, Others), By Supply Mode (Packaged, Bulk, On-site), By Region, Competition, Forecast and Opportunities 2020-2030F has evaluated the future growth potential of India LPG Market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in India LPG Market.

 

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Relevant Reports

India LPG Market By Source (Crude Oil Distillation, NGL & LNG Fractionation, Imports), By Application (Residential, Commercial, Industrial, Transportation, Others), By Supply Mode (Packaged, Bulk, On-site), By Region, Competition, Forecast and Opportunities 2020-2030F

Oil and Gas | Sep, 2024

The India LPG market is rising due to increasing urbanization, government initiatives promoting cleaner cooking fuels, and growing consumer awareness of health and environmental benefits associated with using liquefied petroleum gas over traditional biomass and coal in the forecast period 2026-2030F.

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