India experienced a nearly 3% rise in fuel consumption in July, reaching its highest level since March, with petrol and LPG leading the recovery amid shifting demand trends across different petroleum products.
India’s fuel consumption rose nearly 3% in July to 19.92 million metric tonnes, its highest level since March, according to data from the Petroleum Planning and Analysis Cell. The monthly increase followed a weak June and pointed to a broader recovery in demand, even though individual fuels moved in different directions.
Petrol was one of the main supports. Consumption edged up 0.8% from June to 3.82 million tonnes and was about 9.2% higher than a year earlier, reflecting firmer use by motorists. Liquefied petroleum gas also strengthened, rising more than 7.5% month on month to 2.35 million tonnes, its strongest reading since March, though it remained well below the level seen a year earlier.
Diesel, which remains India’s most widely used petroleum product, told a different story. Sales dropped about 6% from June to 8.09 million tonnes, the lowest since February, even though they were still almost 10% above July 2025. The fall suggests that July’s overall gain was driven more by petrol, LPG and other products than by the transport fuel that typically carries the largest share of consumption.
The first half of July had already shown how weather can influence demand. The Economic Times and Business Standard reported that petrol and diesel sales at state-run fuel retailers surged early in the month, helped by delayed monsoon rainfall that supported farm activity and travel. That boost did not fully carry through to the monthly diesel total, but it helps explain the volatility in demand patterns.
Other products were mixed. Naphtha sales fell 13.8% from a year earlier and slipped from June, while bitumen dropped nearly 17% month on month, though it remained higher than a year earlier. Fuel oil was a standout, jumping 27.6% from June to 0.63 million tonnes, while jet fuel was broadly steady at 0.71 million tonnes. The figures come as India also works to bolster energy security, with Reuters reporting that the country plans to source up to a quarter of its LPG imports from the US in 2027 and that state-controlled Oil and Natural Gas Corp will reserve half of a planned 1.75-million-tonne storage facility for strategic needs.
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