India's gas consumption growth slows due to decreased production

Gas consumption in India saw only a slight increase in February, a stark contrast to the high demand seen in previous months. This slowdown is mainly due to falling local production and high import costs. The data from the oil ministry shows a 0.6% increase in gas use year-on-year in February, down from a 9.1% growth between April and February. Previously, the surge in gas consumption was driven by a hot summer that increased demand for electricity. However, as temperatures fell, the demand from power plants dropped significantly. The power sector had a major role, consuming 19% of national gas in May at its peak. By November, this share had halved to 9%. Despite the decline in power sector demand, the fertiliser industry remains the largest consumer of gas. The government's subsidies allow fertiliser producers to afford expensive imported liquefied natural gas (LNG). When LNG prices rise, other industries often switch to cheaper fuels like propane and fuel oil.