India Sees Diesel and Petrol Use Climb While LPG Demand Drops in October

India experienced an increase in petrol and diesel consumption in October 2026, according to recent figures released by the Petroleum Planning and Analysis Cell (PPAC), the analytical wing of the Ministry of Petroleum and Natural Gas. Meanwhile, demand for liquefied petroleum gas (LPG) saw a considerable downturn during the same period.

Petrol consumption grew by 3.11 percent year-on-year, reaching 3.77 million tonnes (mt) in October. Diesel, which remains the most consumed petroleum product in the country, recorded an even more significant rise of 11.69 percent, totaling 8.51 mt. In contrast, LPG consumption declined by 12.11 percent to 2.64 mt in October.

The drop in LPG usage is linked to India’s reliance on imports, primarily delivered through the Strait of Hormuz. This route has been vulnerable due to ongoing instability in West Asia since late February 2026. The geopolitical situation has disrupted supply chains and tightened availability, putting pressure on LPG distribution and consumption.

In response, the Indian government has taken steps aimed at reducing dependence on imported LPG. Initiatives include incentives for city gas distribution (CGD) companies to expand the network of domestic piped natural gas (PNG) connections. Additionally, consumers are being encouraged to switch to PNG where possible, helping to ease the strain on LPG supplies.

These measures are thought to be significant contributors to the recent decreases in LPG consumption. The shift towards PNG also aligns with broader efforts to diversify energy sources and improve energy security amid external uncertainties.

Turning to other fuel categories, aviation turbine fuel (ATF) demand experienced a slight contraction, falling by 1.34 percent to 762,000 tonnes in October compared to the previous year. This decline reflects ongoing fluctuations in the aviation sector, which can be influenced by factors like travel demand and fuel costs.

Looking at a longer timeframe, from April to October 2026, petrol consumption in India increased by 6.53 percent year-on-year to 26.47 mt. Diesel use also grew steadily by 5.91 percent, reaching 56.44 mt during this period. ATF consumption showed marginal growth, rising by 0.28 percent to 5.20 mt.

However, LPG consumption over the same seven-month span dropped sharply by 14.52 percent, falling from 19.09 mt in the previous year to 16.31 mt. This sustained decline highlights the ongoing challenges facing LPG supply and demand in India.

India’s petroleum consumption patterns provide insight into the country's energy dynamics amid global geopolitical tensions and domestic policy shifts. Diesel remains a critical fuel for transportation and industry, while petrol demand reflects rising vehicle use. LPG’s reduction points to a strategic pivot toward alternative fuels and infrastructure expansion, particularly in urban areas where PNG is more accessible.

As India continues to balance energy needs with supply constraints, these consumption trends will play an important role in shaping policy and market responses. The government’s focus on expanding piped natural gas access and reducing reliance on imported LPG fits within a broader strategy to enhance energy resilience and support sustainable growth.