Fuel demand remained strong in Dec; petrol sales grew 6.7%, diesel up 5%

Cooking gas demand increased by 12.7 per cent YoY in December supported by strong household demand

India’s fuel consumption showed robust growth in December as petrol and diesel demand rose by 6.68 per cent and 4.98 per cent year-on-year (Y-o-Y) in the month, according to preliminary data from Petroleum Planning and Analysis Cell (PPAC). 

The strong fuel demand comes amid high travel demand during festival season and a boost in industrial and commercial activity amid the goods and services tax (GST) rate cut. 

Domestic consumption of petrol stood at 3.54 million tonne (mt) in December, compared to 3.32 million tonnes in the same period last year. India’s appetite for diesel stood at 8.45 million tonnes during the month. 

 

Diesel demand is mainly driven by trucks, commercial passenger vehicles, and farm machinery. 

“The GST rates have been recently cut, which has led to buoyancy in industrial and commercial activity. Fuel demand in December would also have been supported by travel demand and marriage season. Additionally, contrary to the trend, urban demand has also shown resilience recently, leading to higher fuel demand,” said Prashant Vasisht, senior V-P and cogroup head, corporate Ratings at Icra. 

In December, liquefied petroleum gas (LPG) or cooking gas demand increased 12.7 per cent Y-o-Y, supported by strong household demand. LPG consumption reached 3.24 million tonnes, compared with 2.88 million tonnes in the same month last year. 

Petrol and cooking gas demand also remained strong in the current financial year. In the first nine months of 2025-26, petrol consumption grew 6.34 per cent from the year before, while cooking gas sales rose 7.90 per cent Y-o-Y during the same period.