India Petrol, Diesel Demand Rises in September, While LPG Consumption Falls 9.15%

India’s consumption of petrol and diesel increased in September, while liquefied petroleum gas (LPG) demand recorded a sharp decline, according to preliminary data from the Petroleum Planning and Analysis Cell (PPAC).

Petrol sales rose 7.21% year-on-year to 3.64 million tonnes in September. Diesel, the country’s largest-selling petroleum product, recorded a 4.86% increase to 7.12 million tonnes. In contrast, LPG consumption fell 9.15% year-on-year to 2.64 million tonnes.

LPG demand remains under pressure

LPG consumption has remained subdued since the West Asia crisis began in late February, amid India’s significant dependence on imported LPG and shipments passing through the Strait of Hormuz.

The government has taken steps to reduce this dependence by encouraging city gas distributors to expand domestic piped natural gas (PNG) connections. LPG consumers are also being encouraged to shift to PNG where access is available.

Supply disruptions and tighter availability during the crisis have contributed to the decline in LPG consumption in recent months.

The fall in LPG demand was also reflected in the April-September period. Consumption during the six months declined 14.93% year-on-year to 13.79 million tonnes from 16.28 million tonnes in the corresponding period a year earlier.

Petrol and diesel demand continues to grow

Petrol consumption during April-September rose 7% to 22.67 million tonnes, while diesel demand increased 4.85% to 47.89 million tonnes.

Aviation turbine fuel (ATF) consumption was largely unchanged in September at 720,000 tonnes compared with the same month a year earlier. For the April-September period, however, ATF demand increased 0.39% to 4.43 million tonnes.

The September data show a divergence in India’s petroleum consumption pattern, with transport fuels recording year-on-year growth while LPG demand remained under pressure.

The trend comes amid efforts to strengthen domestic alternatives and reduce exposure to disruptions affecting imported LPG supplies.