The US Energy Information Administration (EIA) has released optimistic projections for India's fuel consumption, expecting a decent rise in liquid fuels consumption by around 0.3 million barrels per day in 2027. According to the latest EIA monthly update, India's liquid fuel consumption is forecast to reach 5.77 million barrels per day in 2026 and 6.04 mbpd in 2027, representing a significant increase from 5.67 mbpd in 2025. This growth trajectory aligns with India's current momentum, as the country's fuel consumption rose nearly 3% month-on-month to 19.92 million tonnes in July, reaching its highest level since March.
India's fuel consumption rose nearly 3% month-on-month to 19.92 million tonnes in July, reaching its highest level since March, according to data from the Petroleum Planning and Analysis Cell (PPAC). The growth was supported by stronger petrol and LPG demand, with fuel consumption standing at 19.35 million tonnes in June and also around 3% higher than the 19.35 million tonnes recorded in July 2025. This broad improvement in demand despite mixed trends across individual fuel categories indicates a positive momentum in India's energy consumption patterns.
Petrol consumption increased 0.8% from June to 3.82 million tonnes in July, with yearly demand up around 9.2% compared with 3.50 million tonnes in July 2025, as reported by Reuters. This significant year-over-year growth demonstrates sustained recovery in personal mobility and transportation demand, making petrol one of the key drivers of overall fuel consumption growth during the month.
Diesel, India's most widely consumed petroleum product, presented a mixed picture with sales falling around 6% month-on-month to 8.09 million tonnes, marking their lowest level since February, according to Reuters. However, diesel consumption remained nearly 10% higher than a year earlier, when sales stood at 7.36 million tonnes. The monthly decline in diesel demand despite overall fuel consumption growth suggests that July's growth was driven by stronger demand for other petroleum products, indicating a shift in consumption patterns across fuel categories.
LPG consumption increased more than 7.5% from June to 2.35 million tonnes, reaching its highest level since March, as reported by Reuters. However, consumption remained sharply below the year-ago level of 2.81 million tonnes, marking a decline of around 16% compared to July 2025. Despite this year-over-year decline, the monthly increase in LPG demand contributed significantly to the overall fuel consumption growth, indicating improved domestic consumption patterns in the cooking gas segment.
India's refined oil product exports reached their highest monthly level of 2026 at 1.53 million barrels per day in July, representing a 47% increase from 1.04 million bpd in June and 23.2% higher than 1.24 million bpd a year earlier, according to Kpler. As per Kpler analyst Nikhil Dubey, ample crude availability, coupled with an exceptionally strong refining-margin environment and seasonally weak domestic demand during the monsoon, supported India's product exports. Singapore remained the top destination at 123,000 barrels per day, followed by South Africa with 101,000 bpd, while exports to these countries declined by 16.7% and 32% respectively from June levels.
