India Fuel Demand Rises 3% in July: Petrol & LPG Lead Growth

India’s overall fuel consumption recorded a notable increase of nearly 3% month-on-month in July 2026, reaching 19.92 million tonnes. This marks the highest consumption level since March, with robust demand for petrol and LPG driving the surge, as detailed by the Petroleum Planning and Analysis Cell (PPAC).

Key Market Figures

• Overall fuel consumption: 19.92 million tonnes, up nearly 3% month-on-month.
• Petrol consumption: 3.82 million tonnes, a 0.8% increase from June.
• LPG consumption: 2.35 million tonnes, rising more than 7.5% month-on-month.

Petrol demand specifically rose to 3.82 million tonnes in July, also showing an approximate 9.2% increase year-on-year compared to July 2025. LPG consumption similarly saw a significant jump, hitting its highest level since March.

Diesel’s Divergent Trend

In contrast to the overall market, diesel, India’s most widely consumed petroleum product, experienced a decline in sales. Its consumption fell to its lowest figure since February.

• Diesel consumption: 8.09 million tonnes.
• Month-on-month decrease: 6%.
• Year-on-year increase: nearly 10% compared to July 2025.

Despite the monthly dip, diesel sales remained nearly 10% higher than those recorded in July 2025, indicating a stronger annual baseline. This highlights a nuanced demand landscape across different fuel types.

Varied Performance Across Other Fuels

Other fuel categories presented mixed performance, adding complexity to the market picture. While some saw declines, fuel oil registered a strong monthly growth.

• Naphtha consumption: 0.83 million tonnes, down approximately 13.8% year-on-year.
• Bitumen consumption: 0.46 million tonnes, a nearly 17% month-on-month drop.
• Fuel oil consumption: 0.63 million tonnes, up around 27.6% from June.
• Jet fuel consumption: 0.71 million tonnes, remaining relatively stable.

Bitumen, vital for road construction, saw a monthly decrease but still ended about 7% higher than the previous year. Fuel oil, conversely, was a strong performer, indicating robust industrial demand.

Strengthening Energy Security

India continues to bolster its energy security infrastructure through strategic initiatives. These measures aim to enhance the country’s resilience against global energy market fluctuations.

Plans include diversifying LPG import sources, targeting up to one-fourth of LPG imports from the US by 2027. Additionally, Oil and Natural Gas Corp (ONGC) has committed to reserving half of its planned 1.75-million-tonne oil storage facility for the nation’s strategic requirements.