India’s Fuel Demand Rises in August: Petrol Leads with 5.5% Surge, Diesel Steady

India’s fuel consumption continued its upward trajectory in August 2025, with total sales rising 2.6 percent year-on-year to 18.73 million metric tons, according to data released by the Petroleum Planning and Analysis Cell (PPAC). The growth was led by strong demand for petrol, while diesel showed marginal gains, reflecting a mixed but resilient energy consumption pattern across sectors.

 

Key Highlights

The sharp rise in petrol sales was attributed to robust passenger vehicle usage, increased intercity travel, and early festive season mobility. Urban centers and Tier-2 cities saw higher footfall in retail fuel stations, supported by improved consumer sentiment and stable pump prices.

 

Diesel, which accounts for the largest share in India’s fuel basket, recorded a modest increase. The uptick was driven by steady freight movement, agricultural activity, and construction demand, although monsoon-related disruptions and high base effect from last year capped growth.

 

LPG demand continued to expand, reflecting strong household consumption and rising penetration of government-backed cooking gas schemes. Meanwhile, ATF consumption dipped slightly due to weather-related flight cancellations and subdued international travel volumes.

 

From April to August FY26, cumulative petrol consumption rose 6.44 percent to 17.78 million metric tons, while diesel sales grew 2.27 percent to 38.88 million metric tons. LPG usage during the same period climbed 7.73 percent to 13.82 million metric tons, indicating sustained momentum in domestic energy demand.

 

The data underscores India’s gradual recovery in fuel consumption, supported by economic activity, infrastructure rollout, and consumer mobility. Analysts expect stronger numbers in September and October as festive demand peaks and logistics operations scale up.

 

Sources: ETEnergyWorld, PPAC Consumption Dashboard