India's March LPG demand rises with lockdown
Indian LPG demand in March increased by 2pc from a year earlier but fell short of a record high in January. LPG was the only fuel to show growth last month amid the Covid-19 outbreak that closed businesses and barred people from leaving homes under a 21-day nationwide lockdown from 25 March.
LPG consumption increased to 2.31mn t in March from 2.26mn t a year earlier but trailed a record 2.45mn t in January, according to preliminary data from the oil ministry. Demand for the fuel has increased because the lockdown forced people to cook at home, with their access to restaurants and takeaways cut off. Refiners also cut prices of the fuel to boost demand. A surge in cases and deaths may force the government to extend the lockdown in a staggered fashion until the end of April.
State-controlled refiners reduced non-subsidised prices this month for a 14.2kg cylinder by 62 rupees (81¢) to Rs744 for a 14.2kg cylinder in Delhi from Rs805.50 in March. They cut prices for March by Rs53 from February. Demand in April will further increase because of the impact of the lockdown and after the government announced three free refills to those under its state-sponsored subsidy scheme.
India's LPG demand is forecast to increase by 6pc to around 28mn t in the 2020-21 fiscal year ending 31 March from 26.4mn t in 2019-20. Demand in 2019-20 rose by 6pc from a year earlier because the subsidy scheme provided LPG access to 80mn low-income households. Indian households are eligible for 12 standard 14.2kg cylinders each year, which account for nearly 90pc of India's total demand for the fuel.
By S Dinakar
source: Argus Media
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