India's petrol, diesel demand grows in September; LPG consumption falls

Petrol sales rose 7.21 per cent and diesel sales 4.86 per cent in September, while LPG consumption fell 9.15 per cent amid import dependence and West Asia supply disruptions

India’s consumption of petrol and diesel rose in September, against a sharp decline in demand for liquefied petroleum gas (LPG) during the month, preliminary data from the Petroleum Planning and Analysis Cell (PPAC) showed.

 

Petrol sales increased by 7.21 per cent year-on-year (Y-o-Y) to 3.64 million tonnes (mt) in September, while sales of diesel, the country’s largest-selling petroleum product, rose by 4.86 per cent to 7.12 mt. However, LPG consumption declined by 9.15 per cent Y-o-Y to 2.64 mt in September.

 

Since the onset of the West Asia crisis in late February, India’s LPG consumption has remained under pressure due to the country’s heavy dependence on imported LPG and shipments through the Strait of Hormuz.

  

The government has introduced measures to reduce LPG dependence, including incentives for city gas distributors (CGDs) to expand domestic piped natural gas (PNG) connections and encouragement for LPG consumers to shift to PNG, subject to accessibility.

 

Amid supply disruptions and tighter availability during the crisis, these measures have contributed to the sharp decline in LPG consumption seen in recent months.

 

Aviation turbine fuel (ATF) demand was flat at 720,000 tonnes in September compared with a year ago.

 

During April–September 2026, petrol consumption rose by 7 per cent to 22.67 mt, while diesel demand increased by 4.85 per cent to 47.89 mt. ATF consumption rose 0.39 per cent to 4.43 mt.

 

LPG consumption during the six-month period fell 14.93 per cent to 13.79 mt from 16.28 mt in the year-ago period.