India’s LPG & PNG demand doubled in 10 years: IISD

Mumbai: India’s use of liquefied petroleum gas (LPG) and Piped Natural Gas (PNG) for cooking has grown very quickly over the past decade, says  the International Institute for Sustainable Development (IISD) amid the emerging situation arising out of the conflict between the Israel-US combine and Iran which has affected fuel supplies across the globe. 

India’s high reliance on imported fuels to meet growing demand increases exposure to economic, energy, and health risks, states the IISD, an independent think tank working to fulfill a bold commitment to create a world where people and the planet thrive.

The IISD pointed out that the ongoing West Asia crisis shows India becomes more vulnerable to global supply disruptions, geopolitical tensions, and shipping constraints when it depends heavily on imported fuels. 

“Recent reports of LPG shortages for commercial users highlight rising pressure on India’s cooking fuel supply and the risks of relying heavily on imports. While prioritizing LPG for households can provide short‑term relief, it also reinforces the need to diversify clean cooking options,” said Sunil Mani, Policy Advisor, IISD.

In India, LPG consumption doubled from about 15 million metric tonnes (MMT) in 2011–12 to around 31 MMT in 2024–25. More than 93 per cent of the growth in LPG consumption has been met through imports, imported LPG rose from about 6 MMT to around 21 MMT during this period.

India is also planning a major expansion of PNG connections, targeting 120 million households by 2030, which would be about eight times higher than current levels. Meeting this target would likely require much higher natural gas imports, further increasing dependence on external fuel supplies.

In addition, high import dependence exposes the country to price volatility in international energy markets. 

Global price spikes can increase the cost of LPG and PNG, which may raise government subsidy burdens or increase household energy expenses.

LPG price volatility creates health risks. Increasing dependence on volatile fossil fuels, whose prices can increase dramatically, impacts poor households, who may regress back to cooking on biomass in light of higher prices reversing recent gains made on clean cooking.

Because of these risks, relying mainly on LPG and PNG for clean cooking may not be sustainable in the long term.

To maintain progress in clean cooking while reducing these vulnerabilities, India will need to diversify its cooking energy mix by promoting alternatives such as electric cooking and biogas.

“Our latest analysis shows that electric cooking was already about 15% cheaper than LPG. With the recent Rs 60 price increase for a 14.2 kg cylinder, electric cooking is now roughly 20 per cent cheaper for many households. Encouraging urban households with reliable electricity to shift to electric cooking can reduce cooking costs and ease demand for LPG. This would help ensure that LPG supply is maintained for lower- income households supported through schemes such as the Pradhan Mantri Ujjwala Yojana,” said Mani.

According to him, over time, gradually scaling up electric cooking could cut LPG demand by up to 50 per cent by 2050, strengthening India’s clean cooking transition and overall energy security.