India’s Fuel Demand Jumps 3% in July: What Changed in Petrol, Diesel and LPG Demand?

India’s fuel consumption rose nearly 3% month-on-month to 19.92 million tonnes in July 2026, marking its highest level since March, according to data from the Petroleum Planning and Analysis Cell (PPAC). The increase was driven mainly by stronger petrol and LPG demand, although diesel consumption declined from the previous month.

Overall fuel demand was also around 3% higher than the 19.35 million tonnes recorded in July 2025, indicating an improvement in petroleum product consumption despite mixed trends across categories.

Petrol Demand Rises, Diesel Sales Decline

Petrol consumption increased 0.8% month-on-month to 3.82 million tonnes in July. On a year-on-year basis, petrol demand rose around 9.2% from 3.50 million tonnes recorded in July 2025.

Diesel, India's most widely consumed petroleum product, saw a different trend. Sales declined nearly 6% from June to 8.09 million tonnes, the lowest level since February. However, diesel demand remained nearly 10% above the year-ago level of 7.36 million tonnes.

The contrasting trends suggest that the monthly rise in overall fuel demand was driven by stronger consumption of products other than diesel.

LPG Demand Jumps Over 7.5% in July

LPG consumption increased more than 7.5% month-on-month to 2.35 million tonnes, its highest level since March. However, demand remained around 16% below the 2.81 million tonnes recorded in July 2025.

India is also seeking to diversify its LPG import sources. The country plans to source up to one-fourth of its LPG imports from the US in 2027 as it looks to reduce its dependence on Middle Eastern supplies.

Meanwhile, naphtha consumption fell nearly 13.8% year-on-year to 0.83 million tonnes, while bitumen demand declined nearly 17% month-on-month to 0.46 million tonnes. Fuel oil consumption, however, jumped 27.6% from June to 0.63 million tonnes.

What Does the Fuel Demand Data Indicate?

The July figures point to a gradual improvement in overall petroleum consumption, although demand remains uneven across products. Higher petrol and LPG consumption provided support, while the monthly decline in diesel, naphtha and bitumen limited the broader gains.

Read more: Ethanol Blending in Aviation Fuel: Is It Really Happening? Government Responds.

Conclusion

India’s July fuel demand increased 3% to 19.92 million tonnes, supported by higher petrol and LPG consumption. While diesel demand fell from June, its year-on-year growth remained positive. The data indicates improving overall fuel consumption, with changing demand patterns across key petroleum products.

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