As per Reuters news report, India experienced a rise in fuel consumption by 2.4% in May 2026 despite significant disruptions in LPG supplies caused by geopolitical tensions in the Strait of Hormuz.
Meanwhile, the demand for LPG fell sharply by 20% during the same period.
India's fuel consumption reached 19.93 million metric tons in May,2026 up from 19.47 million metric tons in April 2026. However, this marks a 6.5% decrease compared to May of the previous year.
The slight monthly increase reflects varying demand across different fuel types.
LPG consumption faced a stark decline, plummeting 20% to 2.13 million tons compared to a year earlier, primarily due to shipping disruptions in the Strait of Hormuz amid ongoing conflicts.
India sources about 90% of its LPG imports from the Middle East. The country experienced its worst LPG supply crisis in decades as sanctions disrupted the flow of Iranian-origin LPG, smuggled as Omani LPG, impacting imports significantly.
Read More: Domestic LPG Cylinder Price Increased by ₹29; Second Cooking Gas Hike in 3 Months!
The data indicated a 6.1% decrease in gasoline sales from April and a 3.4% drop compared to the previous year.
Conversely, diesel consumption increased by 1.6% from a year earlier and 4.8% month-on-month, possibly driven by rising vehicular traffic and industrial activity.
India’s state-owned fuel retailers increased diesel prices by ₹2.71 per litre and petrol by ₹2.61 per litre to offset losses due to elevated crude oil costs.
Naphtha sales reduced by 29% year-on-year, while bitumen consumption dropped by 39% annually, reflecting fluctuating demand.
India's overall fuel consumption experienced a minor increase despite significant decreases in specific fuel types. The geopolitical situation in the Strait of Hormuz substantially affected LPG supply and demand patterns, highlighting the diverse challenges within the energy sector.
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Published on: Jun 9, 2026, 3:16 PM IST
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