China is currently known for having the world’s largest LPG residential sector market. By 2030, India is set to overtake China in this sector. On Tuesday, Wood Mackenzie said, “Liquefied Petroleum Gas (LPG) demand in the residential sector will continue to see sustainable growth at a cumulative annual growth rate of 3.3%, reaching 34 million tonnes in 2030 as households’ dependence on solid biomass diminishes in the long run supported by rising average household incomes and urban population.”
LPG is more expensive than biomass even though the government covers the subsidy and initial cost of set up. Affordability and infrastructure challenges in the LPG sector will be further addressed by the Indian government.