India August Fuel Demand Falls 2.8% to 18.61 Million Tons

India's overall fuel consumption dropped 2.8% year-over-year in August to total 18.61 million metric tons, according to data from the Petroleum Planning and Analysis Cell of the oil ministry. The contraction occurred despite simultaneous gains in key transport fuels like gasoline and diesel, revealing a sharp divergence across the country's energy product categories.

Divergent Trends in Transport and Industrial Fuels

Gasoline, or petrol, sales climbed 8.2% from a year earlier to reach 3.84 million metric tons in August. At the same time, diesel consumption rose 6.8% to total 7.02 million metric tons, underscoring continued highway freight and passenger vehicle activity during the month.

However, these transport gains were overshadowed by steep declines in major industrial and household sectors. Cooking gas (LPG) sales decreased 17.2% to 2.35 million metric tons, while naphtha sales fell 22.3% to 0.83 million metric tons.

Infrastructure and Specialized Products

Other petroleum categories experienced varying demand trajectories across the Indian market. Sales of bitumen, which is heavily utilized for road construction and paving projects, were up 19.8% in August compared to the prior year. Meanwhile, fuel oil use edged up 4.8% over the same period.

What Drives India's Petroleum Demand

As the world's third-largest oil importer and consumer, India's monthly consumption data serves as a key indicator of domestic economic activity and industrial energy demand. While diesel and gasoline figures point to active mobility and transportation sectors, the steep pullbacks in feedstocks like naphtha and household staples like LPG highlight localized contractions that ultimately dragged total fuel volumes into negative territory for the month.