Fuel consumption India underwent a major transformation in July 2026, with the petrol and diesel demand surging with double digit growth. Even the demand for LPG has declined sharply since both commercial & industrial consumers are switching to PNG. The main reason behind the changing fuel preferences is supply disruptions earlier this year due to the US Iran war.
LPG Consumption Falls as PNG Gains Popularity
LPG consumption declined 17.4% to 2.37 million tonnes during July mainly because of the shift in commercial and industrial consumers towards piped natural gas (PNG), a trend that accelerated following LPG supply disruptions linked to the West Asia conflict earlier this year. Many hotels, restaurants and industrial users that shifted to PNG have continued using the cleaner pipeline-based fuel even after LPG supply restrictions were eased.
Although LPG sales recovered 8.6% month-on-month in June after restrictions were lifted, overall demand has remained below historical levels.
July LPG consumption was 13.3% lower than July 2024 and 1.1% below July 2023.
Petrol Sales Rise Nearly 10% in July
According to provisional sales data from the OMC's higher agricultural activity, freight movement and road transport was the reason behind the surge in demand for transport fuels in July.
According to the same data, petrol sales rose 9.7%YoY to 3.45 million tonnes in July, compared with 3.14 million tonnes in the same month last year.
The latest figures also show that petrol consumption was 15.1% higher than July 2024 and 36.1% above July 2023.
Diesel Demand Jumps
India's diesel consumption increased 10.7% YoY to 7.12 million tonnes in July from 6.43 million tonnes a year ago. Diesel sales were also 11.5% higher than July 2024 and 12.7% above July 2023. Sequentially, diesel consumption fell 9.2% from 7.85 million tonnes recorded in June due to seasonal factors.
Aviation Fuel Demand Remains Positive
Demand for Aviation Turbine Fuel (ATF) also remained in positive territory. ATF sales increased 2.9% YoY to 659,900 tonnes during July.
The fuel registered 2.3% growth over July 2024 and 16.5% increase compared with July 2023
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