The Market Report Covers LPG Companies in India and is Segmented by Source of Production (Crude Oil and Natural Gas Liquids) and Application (Residential & Commercial, Industrial, Auto Fuels, and Other Applications)

India LPG Market was valued at USD 17.4 billion in 2024 and is expected to reach at USD 22.34 Million in 2030 and project robust growth in the forecast period with a CAGR of 4.1% through 2030.

The India LPG Market size is USD 15 billion in 2023, driven by increasing domestic consumption, government subsidies, and expanding distribution networks through 2028.

India's production of liquefied petroleum gas (LPG) increased gradually over the past decade, from a low of 9.84 million metric tons in financial year (FY) 2015 to a high of 12.83 million metric tons in (FY) 2023.

India Liquified Petroleum Gas Market was valued at USD 16.71 Billion in 2023 and is projected to reach USD 23.02 Billion by 2031, growing at a CAGR of 4.1% from 2024 to 2031.

The India LPG market encompasses the production, distribution, and consumption of liquefied petroleum gas across various sectors. This market includes different supply sources, distribution channels, and end-use applications catering to diverse consumer needs. The ecosystem integrates refineries, storage facilities, bottling plants, and an extensive network of distributors to ensure reliable LPG supply for domestic, commercial, and industrial consumers.

The market serves as a crucial component of India’s clean energy transition while simultaneously addressing the growing need for efficient and environmentally friendly fuel solutions. It involves collaboration between oil marketing companies, private players, and government agencies to develop and maintain a robust LPG infrastructure across the country.

Consumption of liquefied petroleum gas across India was around 28.5 million metric tons during financial year 2023, a slight increase from the previous year. Furthermore, an overall increase in the consumption of LPG was noted in the country over the years from fiscal year 2013.

The Indian LPG market, valued at approximately ₹[Estimate based on market size XX and currency conversion – needs more data to provide a specific number] million in 2025, is experiencing robust growth, driven by rising urbanization, increasing disposable incomes, and government initiatives promoting clean cooking fuels. A compound annual growth rate (CAGR) exceeding 3.50% is projected through 2033, indicating a significant expansion of the market. Key segments include residential and commercial applications, which currently dominate the market share, followed by industrial use and autofuels. The production sources are predominantly crude oil and natural gas liquids, with the latter showing promising growth potential due to ongoing infrastructure development and increasing gas production. Major players like Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum hold significant market share, although the emergence of private players like Supergas and Jyothi Gas signifies increasing competition. While government regulations and price volatility pose challenges, the overall market outlook remains positive, fueled by consistent demand growth and the expanding middle class in India. The regional distribution of LPG consumption in India mirrors the country's population density, with higher demand concentrated in densely populated urban areas and states with a larger rural population. The government’s focus on expanding LPG access to rural households under schemes like Pradhan Mantri Ujjwala Yojana further fuels market growth in less-developed regions. However, regional disparities in infrastructure development and affordability could influence the growth trajectory in certain areas. Future market growth will be shaped by factors like technological advancements in LPG distribution and storage, the adoption of cleaner fuels, and the government's continued efforts to improve accessibility and affordability of LPG across all socio-economic strata. Further research into the specific composition of the "Other Applications" segment is recommended to provide a more comprehensive market analysis. Recent developments include: In February 2022, Indian Oil Corp (IOC) announced the plans to construct three new plants in Northeast India to increase its LPG bottling capacity by nearly 53% or to 8 crore cylinders annually by 2030, to meet the growing demand in the region. Furthermore, the total investment in the plant expansion is likely to range between INR 325-350 crore.. Notable trends are: LPG Extracted From Natural Gas is Expected to Have Considerable Growth Rate.

India: Liquefied petroleum gas production, thousand barrels per day: The latest value from 2014 is 312.72 thousand barrels per day, a decline from 318.76 thousand barrels per day in 2013. In comparison, the world average is 20.98 thousand barrels per day, based on data from 189 countries. Historically, the average for India from 1986 to 2014 is 149.54 thousand barrels per day. The minimum value, 34 thousand barrels per day, was reached in 1987 while the maximum of 318.76 thousand barrels per day was recorded in 2013.

The Liquefied Petroleum Gas (LPG) industry, currently valued at approximately $XX million (estimated based on provided CAGR and market size), is experiencing robust growth, exceeding a 5% Compound Annual Growth Rate (CAGR). This expansion is fueled by several key factors. Rising urbanization and industrialization in developing economies like India and China drive significant demand for LPG as a cooking fuel and industrial feedstock. The increasing adoption of LPG in vehicles, particularly in regions with limited access to natural gas infrastructure, further contributes to market growth. Furthermore, government initiatives promoting cleaner cooking fuels and stringent emission regulations are bolstering LPG consumption. However, the industry also faces challenges. Price volatility linked to crude oil prices and the competition from alternative energy sources, such as biogas and electricity, pose significant restraints. Furthermore, safety concerns associated with LPG storage and handling necessitate continuous improvements in infrastructure and safety regulations. The market is segmented by source (crude oil and natural gas liquids) and application (residential, commercial & industrial, autofuels, and others), with residential and commercial segments currently dominating. Major players like Exxon Mobil, Novatek, Sinopec, and others are strategically expanding their operations to capitalize on this growth, focusing on supply chain optimization and technological advancements to enhance efficiency and safety. The geographical distribution of the LPG market reflects varying levels of development and energy consumption patterns. North America and the Asia-Pacific region, driven by robust economies and rising energy demand, are key contributors to global market size. The Middle East and Africa regions, rich in LPG resources, are expected to witness significant expansion driven by industrial growth and infrastructure development. Europe, while having relatively mature LPG markets, is expected to see moderate growth driven by continued industrial demand and ongoing energy diversification strategies. South America is also projected to experience growth, albeit at a slower pace, due to fluctuating economic conditions and competing energy sources. Looking ahead, technological advancements in LPG production and distribution, along with sustainable practices, will play a crucial role in shaping the future trajectory of the LPG industry in the coming decade. The forecast period of 2025-2033 promises continued growth, though the rate may fluctuate depending on global economic conditions and the adoption of alternative energy sources. Recent developments include: In October 2022, Maire Tecnimont S.p.A. announced that its principal subsidiary, Tecnimont S.p.A., was awarded an EPC contract by SONATRACH's Direction Centrale Engineering & Project Management for the execution of an LPG extraction plant within the existing Rhourde El Baguel oil and gas treatment complex in northeastern Algeria. The total contract value is around USD 380 million., In February 2022, Indian Oil Corp. (IOC) announced plans to construct three new plants in Northeast India to increase its LPG bottling capacity by nearly 53% or to 8 crore cylinders annually by 2030 to meet the growing demand in the region. The total investment in the plant expansion is likely to range between USD 43- 46 million.. Key drivers for this market are: 4., Increasing Demand for Gasoline and Diesel Across the Globe4.; Rapid Expansion of Automotive Industry. Potential restraints include: 4., Strict Mandates by the Global Organizations on VGO Composition. Notable trends are: LPG Extracted from Natural Gas Liquids to Dominate the Market.

ndia LPG Cylinder Market was valued at USD 2.1 billion in 2024 and is expected to reach at USD 3.07 Billion in 2030 and project robust growth in the forecast period with a CAGR of 6.4% through 2030.

Snapshot img

Liquefied Petroleum Gas (LPG) Market Size 2025-2029

The liquefied petroleum gas (LPG) market size is forecast to increase by USD 55.2 billion at a CAGR of 3.3% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing supply of natural gas and the emergence of virtual pipeline technology (VPT). Natural gas surplus has led to an abundance of LPG as a byproduct, making it a cost-effective energy source. VPT, an innovative technology that allows the transportation of LPG through virtual pipelines, enhances the market's flexibility and efficiency, expanding its reach and applications. However, the market faces challenges that could hinder its growth potential. Regulatory hurdles impact adoption, as stringent regulations and safety concerns restrict the expansion of LPG infrastructure in certain regions. Supply chain inconsistencies also temper growth, as fluctuations in production and transportation can disrupt the market's stability. The competition from other sources of energy, such as renewable energy and natural gas, is intensifying, putting pressure on LPG prices and market share.
The competition from other energy sources, such as renewable energy and natural gas, further intensifies the market competition. Companies seeking to capitalize on market opportunities must navigate these challenges effectively by focusing on regulatory compliance, supply chain optimization, and differentiating their offerings through technology and sustainability initiatives. The LPG industry is also exploring alternative energy sources, such as hydrogen-based fuel cells and battery electric vehicles, to further reduce its carbon footprint.

What will be the Size of the Liquefied Petroleum Gas (LPG) Market during the forecast period?

Request Free Sample

In the dynamic LPG market, brand awareness continues to rise as companies invest in marketing strategies to expand their customer base. Meanwhile, advancements in technology are shaping the industry, with leak detection systems ensuring safety and reducing emissions. Carbon offsetting initiatives are gaining traction, as LPG producers seek to minimize their environmental footprint. Flow control technologies and automation systems enable efficient LPG management, while renewable energy integration and hydrogen blending are driving innovation. The expansion of LPG refueling stations, including those with mobile payment options, caters to the growing demand for convenience. Safety training programs and cylinder inspections ensure compliance with regulations, while pipeline infrastructure and storage capacity developments address supply concerns. The market encompasses the production, distribution, and consumption of non-toxic, sulfur-free flammable hydrocarbon gases, including propane and butane, used as cleaner energy sources for various applications.
Odorization and pressure regulation technologies enhance LPG quality and reliability. Industry consolidation and investment opportunities present strategic advantages for market players. Digital platforms and smart meters facilitate customer engagement and improve the overall LPG experience. The future outlook for LPG is promising, with potential applications in bio-LPG, bunker fuel, and conversion kits. Additionally, remote monitoring systems and carbon capture technologies are poised to revolutionize the industry.

How is this Liquefied Petroleum Gas (LPG) Industry segmented?

The liquefied petroleum gas (LPG) industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Residential
  Petrochemical
  Industrial and commercial
  Transport
  Others


Source

  Natural gas liquid
  Crude oil


Distribution Channel

  Cylinder Distribution
  Bulk
  On-site storage


Geography

  North America

    US
    Canada


  Europe

    Germany
    UK


  APAC

    Australia
    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By End-user Insights

The residential segment is estimated to witness significant growth during the forecast period. Liquefied Petroleum Gas (LPG) is a versatile energy source with extensive applications, including residential water and space heating and cooling, as well as outdoor activities such as barbecues and camping. In developing countries, LPG serves as a viable alternative to electricity for lighting. Due to its high density as a liquid, LPG is typically liquefied for bulk storage and transportation. This process involves refrigeration for sea shipment and large-volume storage at receiving terminals. LPG's high energy content per ton in a liquid state surpasses that of traditional fuels and most oil products. LPG infrastructure includes dispensing

[102 Pages Report] India LPG Market Size, Share 2026 By End Use Segment (Residential, Commercial, Industrial), By Source (Crude Oil Distillation, NGL & LNG Fractionation), Competition Forecast & Opportunities,

The Indian liquefied petroleum gas (LPG) market surged to $26.3B in 2024, increasing by 17% against the previous year. Overall, consumption recorded a prominent expansion. Over the period under review, the market attained the maximum level in 2024 and is expected to retain growth in the near future.

India LPG comes with extensive industry analysis of development components, patterns, flows, and sizes. The report calculates present and past market values to forecast potential market management during the forecast period between 2025 - 2033.

The Liquefied Petroleum Gas (LPG) market, currently valued at approximately $XX million (assuming a reasonable market size based on industry reports and growth rates of similar markets), is projected to experience robust growth with a Compound Annual Growth Rate (CAGR) exceeding 5% from 2025 to 2033. Several factors contribute to this positive outlook. Increasing urbanization and industrialization, particularly in developing economies within Asia-Pacific and the Middle East & Africa, fuel the demand for LPG as a clean and relatively affordable cooking fuel and industrial feedstock. The shift towards cleaner energy sources, coupled with government initiatives promoting LPG adoption for reducing air pollution in residential areas, further boosts market growth. The diverse applications of LPG across residential, commercial, industrial, and autofuel sectors ensure a broad and stable demand base. However, fluctuations in crude oil prices pose a significant challenge, directly impacting LPG production costs and price volatility. Competition from alternative fuels, such as natural gas and biofuels, also presents a restraint, necessitating continuous innovation and efficiency improvements within the LPG industry. The market is segmented by source of production (crude oil and natural gas liquids) and application, allowing for targeted market penetration strategies. Leading players like BP PLC, Exxon Mobil Corporation, and others are actively engaged in expanding production capacity and optimizing supply chains to capitalize on the growing demand. The geographical distribution of the LPG market reflects varying levels of development and energy consumption patterns. North America and Europe, while mature markets, maintain substantial demand, especially for industrial applications. However, the fastest growth is anticipated in Asia-Pacific and the Middle East & Africa, driven by population growth and rising energy needs. This geographic segmentation presents strategic opportunities for LPG producers to tailor their offerings and investments to meet region-specific requirements. Furthermore, advancements in LPG storage and transportation technologies, including the development of safer and more efficient cylinders and pipelines, are expected to further enhance the market's growth trajectory over the forecast period. The continuous improvement in safety standards and regulatory frameworks surrounding LPG handling also contributes to increased consumer confidence and market expansion. Recent developments include: In October 2022, Maire Tecnimont S.p.A. announced that its principal subsidiary, Tecnimont S.p.A., was awarded an EPC contract by SONATRACH's Direction Centrale Engineering & Project Management for the execution of an LPG extraction plant within the existing Rhourde El Baguel oil and gas treatment complex in northeastern Algeria. The total contract value is around USD 380 million., In February 2022, Indian Oil Corp. (IOC) announced plans to construct three new plants in Northeast India to increase its LPG bottling capacity by nearly 53% or to 8 crore cylinders annually by 2030 to meet the growing demand in the region. The total investment in the plant expansion is likely to range between USD 43- 46 million.. Notable trends are: LPG Extracted from Natural Gas Liquids to Dominate the Market.

The market is segmented by Vehicle Type (Three-Wheelers, Passenger Cars, Trucks (Light, Medium and Heavy) and Buses), By Fuel Type (CNG and LPG) and Geography.

MEA & India CNG And LPG Vehicle Market size was valued at USD 7.2 Billion in 2023 and is projected to reach USD 12.5 Billion by 2031 growing at a CAGR of 7.2% from 2024 to 2031.

MEA & India CNG And LPG Vehicle Market Dynamics

The key market dynamics that are shaping the MEA & India CNG And LPG vehicle market include:

Key Market Drivers

Rising Environmental Concerns and Emissions Regulations: India's ambitious objective of increasing natural gas share from 6.3% to 15% by 2030 is causing significant changes in the automotive industry. The government has adopted higher pollution standards, requiring manufacturers to use cleaner fuel technology.

Cost-effectiveness of CNG/LPG: According to Indian Oil Corporation, CNG has a 45-60% cost advantage over traditional fuels, making for a convincing economic rationale. Commercial fleet operators are saving significantly on operational costs by converting to CNG/LPG.

Snapshot img

Liquefied Petroleum Gas Cylinder Market Size 2025-2029

The liquefied petroleum gas cylinder market size is forecast to increase by USD 722.5 million at a CAGR of 6.4% between 2024 and 2029.

The Liquefied Petroleum Gas (LPG) Cylinder Market is experiencing significant growth due to the increasing use of LPG in various applications, particularly in the industrial, commercial, and residential sectors. This trend is driven by the cleaner burning properties and versatility of LPG compared to traditional fuels. Furthermore, the adoption of composite LPG cylinders is gaining momentum due to their lightweight and durable nature, making them an attractive alternative to traditional steel cylinders. However, the market is not without challenges. The availability of alternate fuels, such as natural gas and renewable energy sources, is posing a threat to the market's growth.
To capitalize on the opportunities and navigate these challenges effectively, companies in the LPG cylinder industry should focus on innovation, cost competitiveness, and regulatory compliance. Additionally, strategic partnerships and collaborations can help companies expand their reach and enhance their product offerings. The LPG industry is also exploring alternative energy sources, such as hydrogen-based fuel cells and battery electric vehicles, to further reduce its carbon footprint. Overall, the LPG cylinder market presents a compelling growth opportunity for companies seeking to capitalize on the increasing demand for cleaner, more efficient energy solutions.

What will be the Size of the Liquefied Petroleum Gas Cylinder Market during the forecast period?

Request Free Sample

The liquefied petroleum gas (LPG) cylinder market is experiencing significant trends and dynamics that impact its growth and outlook. LPG, which includes heating gas, propane gas, butane gas, and fuel gas, among others, is widely used for heating, cooking, and as a fuel in various industries. Price volatility is a key factor influencing market growth, as fluctuations in crude oil prices can impact LPG production costs. Safety remains a top priority in the LPG industry, with a focus on leak detection, safety training, and safety equipment. Technology advancements, such as remote monitoring, smart metering, and digitalization, are driving innovation and improving efficiency in LPG operations.
The market encompasses the production, distribution, and consumption of non-toxic, sulfur-free flammable hydrocarbon gases, including propane and butane, used as cleaner energy sources for various applications. This market caters to diverse sectors, such as rural residents, agriculture, transportation, recreation, cooking fuel, calefaction, and industrial processes. LPG cylinders have gained significant traction as an alternative to traditional fuels like kerosene, wood, coal, and car emission gases, due to their lower carbon emissions. LPG cylinders are widely used in domestic and commercial applications, including hot air balloons, portable fuel for outdoor activities, and pipe gas supply for industrial processes.
Regulations and safety concerns are also shaping the market, with a focus on cylinder manufacturing, design, testing, recycling, and disposal. Renewable energy sources, such as LPG biogas, are gaining traction as a more sustainable alternative to traditional LPG sources. LPG market growth is being driven by its versatility and environmental benefits, as it produces fewer greenhouse gas emissions compared to other fossil fuels. However, concerns over its carbon footprint and the need for fire suppression systems remain challenges for the industry. Overall, the LPG market is undergoing significant changes, driven by market dynamics, technological advancements, and regulatory requirements.
Understanding these trends and staying informed about industry developments is essential for businesses looking to capitalize on the opportunities presented by this dynamic market.

How is this Liquefied Petroleum Gas Cylinder Industry segmented?

The liquefied petroleum gas cylinder industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Metal
  Composite


End-user

  Residential
  Commercial
  Industrial


Capacity

  5 to 15 kg
  Less than 5 kg


Product Type

  Manual valve cylinders
  Automatic valve cylinders


Geography

  North America

    US
    Canada


  Europe

    Germany
    Russia
    UK


  APAC

    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Type Insights

The metal segment is estimated to witness significant growth during the forecast period. Liquefied Petroleum Gas (LPG) cylinders are essential containers designed to store and transport flammable hydrocarbon ga

The liquefied petroleum gas (LPG) market is experiencing robust growth, driven by increasing industrial and commercial demand, particularly in developing economies. Our analysis projects a market size of $250 billion in 2025, exhibiting a Compound Annual Growth Rate (CAGR) of 5% from 2025 to 2033. This growth is fueled by several key factors: rising urbanization and industrialization, which increase energy consumption across various sectors; the increasing adoption of LPG as a cleaner alternative to traditional fuels in cooking and heating, especially in regions with limited access to natural gas pipelines; and supportive government policies aimed at promoting LPG usage and reducing reliance on fossil fuels in some regions. Significant growth is expected in Asia-Pacific, driven by the expanding economies of India and China, as well as increasing demand from Southeast Asian nations. However, price volatility of crude oil, a primary feedstock for LPG production, poses a significant restraint. Furthermore, the development of alternative renewable energy sources presents a long-term challenge to LPG market growth. The competitive landscape is dominated by global energy majors such as BP, ExxonMobil, Shell, and national oil companies like ADNOC Group and Gazprom. These companies are actively investing in expanding LPG production capacity and distribution networks to meet the growing demand. The market is segmented by type (Natural Gas Liquids, Crude Oil), and application (Commercial, Agriculture, Industrial, Transport, Chemical). The projections indicate that the industrial and commercial sectors will continue to be the largest consumers of LPG, followed by the residential and transportation sectors. The regional breakdown shows significant potential across diverse geographies, with North America, Europe, and Asia-Pacific representing the most substantial market shares. The forecast period (2025-2033) anticipates continued growth, albeit with a moderated CAGR due to the anticipated leveling off of demand in mature markets and the emergence of competing technologies. Comprehensive Analysis of the Global Liquefied Petroleum Gas (LPG) Market: A 2024 Perspective This in-depth report provides a comprehensive overview of the global liquefied petroleum gas (LPG) market, offering crucial insights for businesses and investors seeking to navigate this dynamic sector. We delve into production trends, market segmentation, regional dominance, key players, and emerging opportunities. The report leverages extensive market research and data analysis to deliver actionable intelligence for informed decision-making. Keywords: LPG Market, Liquefied Petroleum Gas, Propane, Butane, Natural Gas Liquids, LPG Production, LPG Consumption, LPG Prices, Energy Market, Petrochemical Industry.

Price for Liquefied Petroleum Gas (LPG) in India - 2023. Find the latest marketing data on the IndexBox platform.