Petrol, diesel demand rise in September; LPG consumption falls nearly 9pc: Report

NEW DELHI, Oct 2: India's consumption of petrol and diesel increased in September, even as LPG demand continued to weaken amid supply disruptions and efforts to reduce dependence on imported cooking gas, preliminary data from the Petroleum Planning and Analysis Cell (PPAC) showed.

Petrol sales rose 7.21pc year-on-year (YoY) to 3.64 million tonnes (mt) in September, compared with the corresponding period last year. Diesel demand, which accounts for the largest share of petroleum product consumption in the country, increased 4.86pc to 7.12 mt.

In contrast, LPG consumption declined 9.15pc YoY to 2.64 mt during the month.

The decline in LPG demand comes against the backdrop of continued supply challenges linked to the West Asia crisis, which began in late February. India relies significantly on imported LPG, with a substantial portion of supplies moving through the Strait of Hormuz. Disruptions along the key shipping route have affected the availability of the cooking fuel and prompted measures to curb dependence on imports.

The government has also been encouraging a shift towards piped natural gas (PNG), particularly in areas where the network is accessible. Incentives have been extended to city gas distribution companies to expand PNG connections and encourage eligible LPG users to make the switch.

The measures, along with tighter LPG availability during the crisis, have contributed to a sustained decline in consumption in recent months.

Demand for aviation turbine fuel (ATF), meanwhile, remained broadly unchanged in September. ATF consumption stood at around 720,000 tonnes, almost the same as the level recorded a year earlier.

The broader consumption trend during the first six months of the financial year also showed stronger demand for transport fuels.

Between April and September 2026, petrol consumption increased 7pc YoY to 22.67 mt. Diesel demand climbed 4.85pc to 47.89 mt during the period.

ATF consumption recorded a more modest increase of 0.39pc during the six-month period, reaching 4.43 mt.

LPG was the key exception, with consumption dropping 14.93pc to 13.79 mt during April-September 2026, compared with 16.28 mt in the corresponding period a year earlier.

The divergent trends point to continued resilience in demand for road transport fuels, while LPG consumption remains affected by supply-side constraints, import dependence and the ongoing shift towards alternative cooking-fuel options. (UNI)