According to latest provisional government data, petrol sales rose 7.9% and diesel sales increased 6.5% year-on-year in August. The growth was attributed to increased mobility, stronger vehicle sales and an expanding economy. For the April-August period, cumulative sales growth was 6.5% for petrol and 4.3% for diesel. The diesel sales growth rate of 6.5% in August was described as unusually high, driven by erratic monsoon rains that arrived late and remained uneven in several areas. This unusual weather pattern led farmers to continue using diesel pumps for irrigation during the peak sowing period, supporting diesel demand despite the typical seasonal decline. August petrol sales reached 3.48 million tonnes, up 14% from August 2024 and 30.7% above August 2023 levels, while diesel sales hit 6.27 million tonnes, marking the second consecutive month of double-digit growth after July's 10.7% rise. The surge in August follows a 9.7% year-on-year growth in July, with petrol sales showing month-on-month growth of almost a percentage to 3.45 million tonnes. India recorded its seventh-lowest August rainfall since 2001 during the review period, creating additional demand for diesel-operated generators among farmers and agriculturists.
Strong vehicle sales this fiscal have contributed significantly to petrol demand growth. An industry executive noted that farmers in many regions have been increasingly using diesel for irrigation, contributing to the diesel sales surge. Meanwhile, jet fuel (ATF) sales rose 5.6% year-on-year to 677,100 tonnes in August, marking a return to growth after the fuel had been hit by the West Asia war and soaring fuel prices. For the April-August period, ATF sales had declined 0.6%. The unusual rainfall pattern also contributed to higher petrol demand from motorists, with August sales showing 14% growth compared to August 2024 and 30.7% above August 2023 levels. August ATF consumption was 5.9% higher than the 639,700 tonnes sold in August 2024 and 17.7% above the 575,400 tonnes recorded in August 2023, with month-on-month growth of 1.3% from July's 668,500 tonnes. The erratic monsoon rainfall boosted irrigation demand during the peak sowing season, with diesel sales showing 9.7% higher than the corresponding period of 2024 and 6.3% above August 2023 consumption. Diesel's continued strength as India's most widely used fuel, powering freight transport, agricultural machinery and irrigation equipment, demonstrates the resilience of economic activity even during weather-related disruptions.
Despite rising imports, cooking gas, or LPG, sales fell 16.2% year-on-year to 2.424 million metric tonnes in August, continuing a decline that began in April. However, LPG consumption rose 3.2% month-on-month to 2.42 million tonnes in August, hitting a six-month high as supply restrictions eased. According to the Petroleum Planning & Analysis Cell (PPAC), this marks the third consecutive month to record an uptick in LPG consumption as India bulked up on cargoes from the US and more supplies came from the Middle East Gulf (MEG) region as conflict intensity waned amid off-and-on peace talks between the US and Iran. India's LPG consumption declined by 8% year-on-year to around 14.74 million tonnes during the first half of 2026 as the West Asia conflict and closure of the Strait of Hormuz completely blocked off supply. The gradual waning of conflict intensity in West Asia, coupled with the government removing restrictions on the supply of liquefied petroleum gas to commercial consumers, helped boost consumption of the critical cooking medium used by more than 33.50 crore households. The conflict led to the government rationing LPG supplies, allocating 100% to the domestic sector and 70% to commercial consumers, a policy that was removed on June 25, 2026.
Petrol consumption surpassed 3.824 million tonnes last month, representing 8% year-on-year growth, though it was almost flat month-over-month. Usage is rising due to increased sales of personal vehicles, with August petrol sales being the second-highest on record after May 2026 (3.91 million tonnes). Diesel consumption slipped below the 8 million tonne mark for the first time since March 2026, falling 13.5% month-over-month to roughly 7 million tonnes in August, but growing 6.5% on an annual basis. The use of the key transport fuel generally declines during monsoons, as rain affects industrial and mining activity as well as freight mobility, though some support comes from Kharif sowing activity. The LPG decline has been attributed largely to a shift in some consumption from LPG to piped natural gas following the West Asia crisis, with restrictions on consumption in sectors such as hotels and restaurants being lifted in June when LPG sales rose 8.6% to 2.18 million tonnes. Data from the Petroleum and Natural Gas Regulatory Board (PNGRB) showed that PNG connections rose 36% between April and June this year to 4.61 lakh, supported by strong growth across domestic, commercial and industrial segments.
