India Petrol, Diesel Demand Rises in September, While LPG Consumption Falls 9.15%

In September, India saw a rise in petrol and diesel consumption while liquified petroleum gas (LPG) demand decreased notably, according to initial figures from the Petroleum Planning and Analysis Cell (PPAC). Petrol sales jumped 7.21% compared to the previous year, reaching 3.64 million tonnes. Diesel, the most sold petroleum product in the country, experienced a 4.86% increase, totaling 7.12 million tonnes.

Conversely, LPG consumption dropped 9.15% year-on-year to 2.64 million tonnes. The pressure on LPG consumption has persisted since the West Asia crisis began in late February, exacerbated by India's heavy reliance on imported LPG via the Strait of Hormuz. The government has attempted to lessen this dependence by promoting city gas distributors to boost domestic piped natural gas (PNG) connections and urging LPG users to switch to PNG where available.

Supply shortages and tighter availability due to the crisis have contributed to the decline in LPG consumption lately. This downward trend was also evident from April to September, with consumption falling 14.93% year-on-year to 13.79 million tonnes, down from 16.28 million tonnes in the same period a year ago. Despite this, petrol and diesel demand continued to rise.

Petrol consumption for April-September grew 7% to 22.67 million tonnes, while diesel demand increased 4.85% to 47.89 million tonnes. Aviation turbine fuel (ATF) consumption remained relatively stable in September, with 720,000 tonnes compared to the same month last year. However, for the April-September period, ATF demand rose 0.39% to 4.43 million tonnes.

The September data reveal a discrepancy in India's petroleum consumption pattern, where transport fuels displayed year-on-year growth while LPG demand remained under strain. This trend follows ongoing efforts to bolster domestic alternatives and lessen exposure to disruptions impacting imported LPG supplies.