India Fuel Sales Surge as LPG Demand Drops

India's fuel market saw divergent trends in August 2026, with a sharp rise in transport fuels and a significant decline in cooking gas. State-run retailers including Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum reported that petrol sales rose 9.1% to 3.48 million tonnes, while diesel sales grew 10.2% to 6.27 million tonnes.

Provisional data from the Ministry of Petroleum and Natural Gas attributed the petrol surge to erratic monsoon rainfall, which increased road travel and agricultural irrigation needs. Diesel growth was further supported by strong GDP growth and heightened activity in manufacturing and freight. Aviation turbine fuel also saw a modest increase, with reports ranging from a 1.4% to 5.6% rise.

Conversely, liquefied petroleum gas (LPG) consumption fell approximately 16.1% to 2.42 million tonnes. This decline resulted from import pressures and supply disruptions caused by the West Asia crisis and shipments through the Strait of Hormuz. The Government of India has encouraged this shift by providing incentives for city gas distributors to expand piped natural gas connections, reducing dependence on LPG in the hotel and restaurant sectors.