- India's fuel consumption rose nearly 3% month-on-month to 19.92 million tonnes in July
- Petrol consumption increased 0.8% from June to 3.82 million tonnes in July 2026
- Diesel demand fell 6% month-on-month but was 10% higher than a year earlier
India's fuel consumption rose nearly 3% month-on-month to 19.92 million metric tonnes in July, reaching its highest level since March, as higher petrol and LPG consumption supported overall demand, data from the Petroleum Planning and Analysis Cell (PPAC) showed.
Fuel consumption stood at 19.35 million tonnes in June and was also around 3% higher than the 19.35 million tonnes recorded in July 2025, pointing to a broad improvement in demand despite mixed trends across individual fuel categories.
Petrol Sales Rise, Diesel Demand Falls Month-On-Month
Petrol consumption increased 0.8% from June to 3.82 million tonnes in July. On a yearly basis, petrol demand was up around 9.2%, compared with 3.50 million tonnes in July 2025, as per Reuters.
Diesel, India's most widely consumed petroleum product, presented a mixed picture. Sales fell around 6% month-on-month to 8.09 million tonnes, their lowest level since February. However, diesel consumption was still nearly 10% higher than a year earlier, when sales stood at 7.36 million tonnes.
The monthly decline in diesel demand came despite the overall increase in fuel consumption, suggesting that the July growth was driven by stronger demand for other petroleum products.
LPG Consumption Hits Highest Since March
LPG consumption increased more than 7.5% from June to 2.35 million tonnes, its highest level since March. However, consumption remained sharply below the year-ago level of 2.81 million tonnes, marking a decline of around 16%.
India is also looking to diversify its LPG import sources. The country plans to buy as much as one-fourth of its LPG imports from the US in 2027, according to Reuters, as it seeks to reduce dependence on Middle Eastern supplies and support broader trade negotiations with Washington.
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Naphtha, Bitumen Sales Decline From June
Naphtha consumption fell around 13.8% year-on-year in July to 0.83 million tonnes and was also lower than the 0.95 million tonnes recorded in June.
Bitumen, which is widely used in road construction, recorded a sharper monthly decline. Consumption fell nearly 17% from June to 0.46 million tonnes, although it remained around 7% higher than a year earlier.
Fuel oil was one of the strongest performers during the month, with consumption rising around 27.6% from June to 0.63 million tonnes.
Jet fuel consumption was largely stable at 0.71 million tonnes, compared with 0.73 million tonnes in June and 0.71 million tonnes a year earlier.
India Builds Strategic Oil Storage Capacity
The fuel consumption data comes as India continues to strengthen its energy security infrastructure.
Oil and Natural Gas Corp will reserve half of its planned 1.75-million-tonne oil storage facility, equivalent to about 13 million barrels, for the country's strategic requirements, junior oil minister Suresh Gopi told lawmakers on Monday.
The move is part of India's broader effort to strengthen its strategic petroleum reserves and improve resilience against disruptions in global energy markets.
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