Diesel consumption in India increased by 8.1% to 8.727 million tons as of April 2026. This rise contrasts sharply with the decline in liquefied petroleum gas (LPG) consumption, which dropped by 13% due to ongoing conflicts in West Asia.
In the previous year, LPG consumption stood at 2.729 million tons, but it fell to 2.379 million tons this year. Domestic LPG sales specifically decreased by 8.1% to 2.219 million tons, indicating a significant shift in energy use.
Meanwhile, petrol sales experienced a notable increase of 7.6%, reaching 3.78 million tons. This uptick reflects changing consumer preferences as people pivot away from LPG amid supply uncertainties.
The overall landscape of the Indian oil market is evolving rapidly. Total LPG consumption for the financial year increased slightly by 6% to 33.212 million tons, despite the recent downturn.
This situation is exacerbated by geopolitical tensions that have disrupted supply chains for both commercial and domestic users—leading to an increased reliance on diesel and petrol.
Commercial LPG usage has seen a staggering decrease of approximately 48%. Additionally, bulk LPG sales plummeted by 75.5%, illustrating the dramatic impact of external factors on local markets.
Indian refineries are responding by increasing production of LPG from petrochemical feedstock, a move aimed at stabilizing supply amid fluctuating demand.
The Indian oil and gas market is projected to grow significantly, with demand expected to reach 5.99 million barrels per day by 2026. This forecast underscores the urgency for strategic planning within the sector.
Currently, India’s dependence on imports for crude oil stands at approximately 88-90%, while it relies on imports for about 60% of its LPG needs. Such high dependency raises concerns about energy security and price volatility.
This sequence of events matters greatly for consumers and industry stakeholders alike, as shifts in demand can lead to price changes and affect energy accessibility across various sectors.
