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Fuel Demand Surges in July: Petrol and Diesel Sales Jump Amid Weak Monsoon, LPG Consumption Declines

Posted on 3rd Aug 2026 03:32 pm by rohit kumar

India's fuel consumption witnessed a mixed trend in July 2026, with petrol and diesel sales recording strong year-on-year growth, driven largely by a weak and delayed monsoon. According to preliminary industry data, state-owned oil marketing companies—Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL)—reported a sharp increase in fuel demand, while LPG consumption continued to decline as more commercial users shifted to Piped Natural Gas (PNG).

 

Petrol Sales Rise Nearly 10% in July

 

Petrol demand remained robust during July despite a slight dip compared to June.

 

Petrol Sales Highlights

Total Sales: 3.45 million tonnes

Year-on-Year Growth: 9.7%

Compared with July 2024: Up 15.1%

Compared with July 2023: Up 36.1%

Compared with June 2026: Down 1.1%

 

The annual growth reflects sustained demand for personal mobility and transportation across the country.

 

Diesel Demand Jumps Over 10%

 

Diesel, India's most-consumed fuel, also registered strong growth during the month.

 

Diesel Sales Highlights

Total Sales: 7.12 million tonnes

Year-on-Year Growth: 10.7%

Compared with July 2024: Up 11.5%

Compared with July 2023: Up 12.7%

Compared with June 2026: Down 9.2%

 

Industry experts attribute the increase primarily to higher agricultural demand, as farmers relied heavily on diesel-powered irrigation pumps due to insufficient rainfall.

 

Weak Monsoon Boosts Fuel Consumption

 

The delayed and below-normal monsoon significantly influenced fuel demand across India.

 

Normally, diesel consumption declines after the arrival of the monsoon because irrigation requirements reduce and transportation activity slows. However, this year, inadequate rainfall forced farmers to use diesel pumps extensively for irrigation, leading to a sharp increase in diesel sales.

 

The month-on-month decline from June is largely seasonal, as June typically witnesses higher fuel consumption due to school holidays, tourism and increased travel.

 

Aviation Fuel Sales Continue to Grow

 

Demand for Aviation Turbine Fuel (ATF) also remained positive.

 

ATF Sales

Total Sales: 6.59 lakh tonnes

Year-on-Year Growth: 2.3%

Compared with July 2023: Up 16.5%

Compared with June 2026: Down 4.6%

 

The increase indicates continued growth in domestic and international air travel despite seasonal fluctuations.

 

LPG Consumption Continues to Decline

 

Unlike petrol and diesel, Liquefied Petroleum Gas (LPG) demand remained under pressure.

 

LPG Sales Highlights

Total Sales: 23.7 lakh tonnes

Month-on-Month Decline: 17.4%

Year-on-Year Decline: 13.3%

Compared with July 2023: Down 1.1%

 

Industry officials said many industries, restaurants and commercial establishments shifted to Piped Natural Gas (PNG) during supply disruptions caused by the West Asia crisis. Even after LPG supplies normalized, many businesses continued using PNG, reducing LPG demand.

 

Key Reasons Behind the Fuel Demand Trend

 

Several factors influenced fuel consumption during July:

 

Weak and delayed monsoon increased diesel usage for irrigation.

Higher agricultural activity supported diesel demand.

Continued travel sustained petrol consumption.

Air travel kept ATF demand elevated.

Commercial users increasingly preferred PNG over LPG.

Key Highlights

Petrol sales rose 9.7% to 3.45 million tonnes in July.

Diesel demand increased 10.7% to 7.12 million tonnes.

Weak monsoon boosted diesel consumption for agricultural irrigation.

ATF sales grew 2.3% year-on-year.

LPG consumption declined 13.3% compared with last year.

Shift from LPG to PNG continued among industrial and commercial consumers.

State-run oil companies IOC, BPCL and HPCL reported strong fuel demand growth.

 

The latest fuel consumption data highlights how weather patterns and changing energy preferences are reshaping India's energy demand. While weak monsoon conditions supported petrol and diesel sales, the ongoing transition from LPG to PNG continues to weigh on commercial LPG consumption.

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