Piped gas demand rises as India's LPG sales fall; petrol, diesel consumption jumps in July

Published 2 August 2026 · india

India's demand for piped natural gas (PNG) continued to strengthen in July as more commercial and industrial consumers shifted away from liquefied petroleum gas (LPG)

India's demand for piped natural gas (PNG) continued to strengthen in July as more commercial and industrial consumers shifted away from liquefied petroleum gas (LPG), contributing to a sharp decline in LPG sales. At the same time, petrol and diesel consumption at the country's three state-owned fuel retailers recorded strong year-on-year growth, driven by delayed monsoon rains that boosted irrigation demand and sustained road transport activity. Combined petrol sales by Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) rose 9.7 per cent to 3.45 million tonnes in July, compared with 3.14 million tonnes in the same month last year. The July petrol volume was also 15.1 per cent higher than the 2.99 million tonnes sold in July 2024 and 36.1 per cent above the level recorded in July 2023.

However, on a sequential basis, petrol consumption slipped 1.1 per cent from 3.48 million tonnes in June. Also Read | E20 petrol can reduce fuel economy by 2-6%: Nitin Gadkari Diesel sales, widely regarded as a key indicator of economic activity, climbed 10.7 per cent year-on-year to 7.12 million tonnes from 6.43 million tonnes in July last year. As the country's most-consumed fuel, diesel is extensively used in freight transportation, agricultural machinery and irrigation pumps. The delayed arrival of the monsoon led farmers to rely more heavily on diesel-powered pumps during the peak sowing season, boosting fuel demand. Diesel consumption in July was 11.5 per cent higher than the corresponding month of 2024 and 12.7 per cent above the level recorded in July 2023. Compared with June, however, sales declined 9.2 per cent from 7.85 million tonnes.

Fuel demand typically softens during the monsoon season as rainfall reduces the need for irrigation and limits road travel. This year, however, the late onset of rains resulted in increased diesel consumption for agricultural activities. The month-on-month decline was largely attributed to seasonal factors, as June generally sees stronger fuel demand due to increased holiday travel during school and college vacations. Aviation turbine fuel (ATF) sales also posted modest growth, rising 2.9 per cent to 659,900 tonnes in July. The volume was 2.3 per cent higher than the 641,300 tonnes consumed in July 2024 and 16.5 per cent above the 566,600 tonnes recorded in July 2023. On a monthly basis, ATF sales eased 4.6 per cent from 691,700 tonnes in June. In contrast, liquefied petroleum gas (LPG) consumption continued to weaken, falling 17.4 per cent to 2.37 million tonnes during the month.