India's LPG Customer Base Drops Amid Supply Disruptions

India's LPG customer base has declined for the first time in over a decade due to the US-Iran war disrupting supplies. According to oil ministry data, active domestic LPG customers dropped from 333.9 million at the start of April to 327.7 million by September. This represents a contraction of 6.2 million households.

The decline has been attributed to the tightening of checks on existing customers and the cessation of new connections due to supply constraints. The Iran war led to a significant reduction in LPG imports from the Gulf region, which accounted for around 90% of India's total imports. This shortage has affected various regions across the country, with southern India experiencing the largest decline of 2.63 million customers.

The shift towards PNG (Piped Natural Gas) accounts for roughly one-sixth of the 6.2 million decline in LPG customers. City gas distribution companies have added nearly 0.6 million PNG customers during the current fiscal year, taking the overall number to 17.5 million.