India's fuel demand showed mixed trends in October 2026. Petrol and diesel sales recorded year-on-year growth, while LPG consumption declined sharply.
Diesel demand registered the strongest increase among the three fuels. The latest figures, sourced from the Petroleum Planning and Analysis Cell (PPAC), highlight changing fuel demand amid supply concerns linked to the West Asia crisis.
Petrol consumption increased 3.11% to 3.77 million tonnes (mt) in October, compared with the same month last year. Diesel sales, meanwhile, rose 11.69% to 8.51 mt. In contrast, LPG consumption fell 12.11% to 2.64 mt during the month.
The decline comes as India continues to face challenges in securing LPG supplies. The country's dependence on imports and shipments through the Strait of Hormuz has made supplies vulnerable to disruptions linked to the West Asia crisis, which began in late February 2026.
India's reliance on imported LPG has exposed its cooking gas supply chain to international disruptions. The situation has prompted the government to encourage a gradual shift towards alternative domestic fuel sources.
The government has introduced measures to reduce dependence on imported LPG and expand the availability of piped natural gas (PNG). These include incentives for city gas distribution (CGD) companies to increase domestic PNG connections.
It has also encouraged LPG consumers to switch to PNG wherever the infrastructure and supply are available. These initiatives, alongside tighter LPG availability and supply disruptions, have contributed to the decline in demand in recent months.
The key developments include:
PPAC data also showed a decline in aviation turbine fuel (ATF) demand. Consumption fell 1.34% year-on-year to 762,000 tonnes in October.
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The cumulative consumption figures for the first seven months of FY27 also reflected contrasting trends across petroleum products.
Between April and October 2026, petrol consumption increased 6.53% to 26.47 mt, compared with the corresponding period last year. Diesel demand rose 5.91% to 56.44 mt, indicating continued growth in consumption of transportation fuels.
ATF consumption also recorded marginal growth during the period. Demand increased 0.28% to 5.20 mt between April and October 2026.
However, LPG consumption continued to decline on a cumulative basis. Demand fell 14.52% to 16.31 mt during the seven-month period, compared with 19.09 mt in the corresponding period last year.
The April-October figures highlight the difference in demand patterns across major fuels:
The latest figures point to sustained growth in petrol and diesel demand, even as LPG faces continued supply pressures. The trajectory of LPG consumption in the coming months will depend on import availability, developments in West Asia, and the expansion of domestic PNG infrastructure.
October's diesel growth was notably higher than its cumulative growth for April-October. Monthly demand increased 11.69%, compared with 5.91% growth over the seven-month period. Petrol followed a similar upward trend, although its monthly growth was lower than its cumulative increase. These figures show that October recorded stronger year-on-year growth in diesel demand.
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