Reportedly, domestic natural gas consumption has slowed due to a decline in local production, high import costs, and reduced demand for gas-based electricity. In February 2025, gas consumption increased by only 0.6 per cent, compared to a 9.1 per cent rise during the April-February period of FY 2024-2025.
Earlier this year, strong growth was mainly driven by a significant surge in gas usage by power generators to meet peak electricity demand during last summer’s extreme heat, an industry executive explained. However, as temperatures dropped, demand for gas from the power sector declined sharply.
Domestic gas consumption increased by 16 per cent in May 2025 as compared to May 2024, reaching 23 per cent in June 2025 and 24 per cent in July 2025. The festive season also contributed to a 16 per cent rise in gas demand in October 2025. However, in other months, demand growth was limited to just 3-4 per cent.