Petrol, Diesel Demand Rises Despite PM’s Fuel-Saving Appeal; LPG Consumption Falls 16%

India’s petrol and diesel consumption rose sharply in August despite Prime Minister Narendra Modi’s earlier appeal to reduce the use of the two fuels amid the West Asia crisis, while LPG demand declined by more than 16%, according to provisional data from the Petroleum Planning and Analysis Cell (PPAC).

With ongoing West Asia conflict, PM Modi had urged people in May to reduce petrol and diesel consumption by using public transport, carpooling and electric vehicles, citing the need to conserve foreign exchange and reduce the country’s dependence on imported energy.

The latest PPAC figures, however, show that petrol consumption increased 7.88% year-on-year in August to 3.82 million tonnes (mt), from 3.54 mt a year earlier. 

Diesel, the country’s largest-selling petroleum product, rose 6.46% to 7.00 mt, compared with 6.58 mt in August 2025.

The rise in demand has been linked to increased road movement. According to a government official cited in the data, deficient rainfall encouraged greater movement on roads, while travellers increasingly chose road transport over flights for shorter journeys.

Diesel demand was supported by continued economic activity, including manufacturing, freight movement and agriculture. A lower base in the year-ago period and strong GDP growth also contributed to the increase.

LPG demand moves in the opposite direction

While petrol and diesel consumption climbed, LPG demand fell sharply. LPG consumption dropped 16.15% in August to 2.42 mt, from 2.89 mt in the same month last year.

The decline comes amid continuing pressure on LPG supplies following disruptions linked to the West Asia crisis and India's dependence on imported LPG shipments through the Strait of Hormuz.

The government has also been encouraging consumers with access to piped natural gas (PNG) to shift away from LPG and has introduced incentives for city gas distributors to expand domestic PNG connections. These measures, along with tighter LPG availability, have contributed to the decline in consumption.

The contrasting trends are notable against the government's wider push to conserve imported fuels. While the August numbers show stronger demand for transport fuels, LPG consumption has fallen substantially amid supply constraints and a shift towards alternative domestic gas connections.

Five-month trend shows the same pattern

The April-August period also reflects the divergence.

Petrol consumption rose 6.48% to 18.94 mt, while diesel demand increased 4.29% to 40.56 mt. LPG consumption, in contrast, fell 15.89% to 11.29 mt, from 13.42 mt during the corresponding period a year earlier.

Aviation turbine fuel (ATF) consumption increased marginally by 1.4% in August to 720,000 tonnes, compared with 710,000 tonnes a year earlier. For April-August, however, ATF consumption was down 0.57% at 3.68 mt.