India Liquefied Petroleum Gas Market Size, Share, By Source (Refinery, Associated Gas, And Non-Associated Gas), By Transportation (Ship, Railways, Intermodal ISO Tank Containers, Pipelines, Reticulated Gas System, And Others), And India Liquefied Petroleum Gas Market Insights, Industry Trend, Forecasts to 2035

India Liquefied Petroleum Gas Market Insights Forecasts to 2035

• India Liquefied Petroleum Gas Market Size 2024: USD 6420.7 Million
• India Liquefied Petroleum Gas Market Size 2035:  USD 11208.2 Million
• India Liquefied Petroleum Gas Market CAGR 2024: 5.2%
• India Liquefied Petroleum Gas Market Segments: Source and Transportation

The India Liquefied Petroleum Gas (LPG) Market Size includes activities such as production, import, distribution and use of LPG, which is the combination of propane and butane, as an environmentally-friendly cooking fuel at home, as well as for heating in industrial applications, fuel for automobiles and commercial applications. Refineries in India are primarily responsible for the delivery of LPG; major suppliers include Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum. India liquefied petroleum gas market is highly reliant on imported LPG to supply its population.

The liquefied petroleum gas in India are backed by government support, including the Pradhan Mantri Ujjwala Yojana (PMUY), launched in May 2016 to provide clean cooking fuel connections to women in economically weaker households. By offering subsidised LPG connections to millions of beneficiaries. India has surged by about 135% over the past decade, with active domestic consumers reaching upwards of 33 crore connections, and more than 10 crore women receiving LPG connections under PMUY alone, driving LPG uptake for clean energy transitions in households.

As technology advances, Indian liquefied petroleum gas providers are now enhancing the supply chain, safety and customer engagement technologies ensuring the safety of resources and quality service to consumers, with examples such as IoT smart LPG gas cylinders that will alert users to when they need to refill or if there is a leak present within such cylinders. Improvements are also being made to the digitalisation of e-KYC processes, which now allow consumers to receive their benefits in a timely manner in India.

Market Dynamics of the India Liquefied Petroleum Gas Market:

The India Liquefied Petroleum Gas Market Size is driven by the rising urbanization, increase in disposable incomes, adopting LPG as a preferred cooking fuel over traditional biomass, rising government subsidies and awareness campaigns promote cleaner and healthier cooking alternatives, increasing industrial demand for LPG in heating and processing, increasing policy emphasis on energy access and rural penetration, technological innovations in IoT-enabled smart LPG cylinders, and rising investments in storage, bottling capacity, and strategic import partnerships further propel the market growth.

The India Liquefied Petroleum Gas Market Size is restrained by the increase in prices, global energy market supply volatility, fluctuations in international LPG prices, high shipping costs, geopolitical tensions challenges, infrastructure challenges in remote or underserved regions, and environmental concerns about fossil fuel dependency.

The future of India Liquefied Petroleum Gas Market Size is bright and promising, with versatile opportunities emerging from the increasing existing distribution networks into rural and semi-urban areas; the penetration of LPG in these regions is low due to limited access with lack of roads connecting them to large populations. Therefore, greater accessibility is likely to help develop a new customer base. Potential also exists through the use of new technologies as well as through developing larger industrial LPG applications, thus diversifying the demand for LPG beyond the household use of LPG and forming an alliance with other importers, can continue to add to the resilience of the market and create long term growth in LPG.

Market Segmentation

The India Liquefied Petroleum Gas Market share is classified into source and transportation.

By Source:

The India Liquefied Petroleum Gas Market Size is divided by source into refinery, associated gas, and non-associated gas. Among these, the non-associated gas segment held the largest revenue market share in 2024 and is predicted to grow at a remarkable CAGR during the forecast period. High efficiency extraction from natural gas wells, increasing investment in gas processing infrastructure, provide high yield, and increasing investment in natural gas exploration all contribute to the non-associated gas segment's largest share and higher spending on liquefied petroleum gas when compared to other source.

By Transportation:

The India Liquefied Petroleum Gas Market Size is divided by transportation into ship, railways, intermodal ISO tank containers, pipelines, reticulated gas system, and others. Among these, the intermodal ISO tank containers segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. The intermodal ISO tank containers segment dominates because of unmatched flexibility, ensures safety, cost effectiveness due to country’s underdeveloped pipeline infrastructure, and enabling seamless and efficient transport across sea, rail, and road in India.

Competitive Analysis:

The report offers the appropriate analysis of the key organisations/companies involved within the India Liquefied Petroleum Gas Market Size, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

Top Key Companies in India Liquefied Petroleum Gas Market:

• Indian Oil Corporation Ltd.
• Bharat Petroleum Corporation Ltd.
• Hindustan Petroleum Corporation Ltd.
• Reliance Industries Limited
• Aegis Logistics Ltd.
• SHV Energy Pvt Ltd.
• Confidence Petroleum India Ltd.
• TotalEnergies SE
• Nayara Energy Ltd.
• Shell plc
• Jyothi Gas Pvt Ltd.
• Eastern Gas
• Shivgas Agencies
• Others

Recent Developments in India Liquefied Petroleum Gas Market:

In September 2025, the Petroleum and Natural Gas Regulatory Board launched a consultation on a “Unified LPG Interoperable Service Delivery Framework.” This aims to allow consumers to switch between Indane, Bharat Gas, and HP Gas, ending the “silo’ operation of state-run firms.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at the India, regional, and country levels from 2020 to 2035. Spherical Insghts has segmented the India Liquefied Petroleum Gas Market Size based on the below-mentioned segments:

India Liquefied Petroleum Gas Market, By Source

• Refinery
• Associated Gas
• Non-Associated Gas

India Liquefied Petroleum Gas Market, By Transportation

• Ship
• Railways
• Intermodal ISO Tank Containers
• Pipelines
• Reticulated Gas System
• Others