Consumption of petrol increased 2.8% during the reported period while that of diesel rose less than 1%. File
| Photo Credit: The Hindu
In the third full month of the West Asia conflict, India’s consumption of liquified petroleum gas (LPG) declined more than 19% in May this year in comparison to the same period last year, according to provisional government data.
Meanwhile, consumption of petrol increased 2.8% during the reported period while that of diesel rose less than 1%.
The provisional data from the Petroleum Planning and Analysis Cell (PPAC) also pointed to consumption of aviation turbine fuel (ATF) – also having dipped about 0.8% during the same period.
LPG consumption down
India consumed about 2.12 million metric tonnes (MMT) in May this year, which is about 19.2% less than 2.62 MMT it consumed in the same month last year, according to the provisional data.
Speaking to The Hindu, Prashant Vashisht, senior vice-president and Co-Group Head of Corporate Ratings at ICRA, explained the fall in consumption is to do with the interim booking period being increased from 21 to 25 days in urban areas and up to 45 days in rural areas.
Mr. Vashist also pointed to an additional factor being the government’s supply maintenance orders – allocating 70% of commercial LPG of the pre-crisis levels to ease pressure on LPG.
Further, according to Abhishek Nath, Sector Head for Energy and Power at Delhi-based think tank Center for Study of Science, Technology and Policy (CSTEP), the decline is primarily to do with supply disruptions.
“India’s LPG consumption has declined in May this year mainly due to supply disruptions. There has been no major structural shift in LPG usage, although the number of piped natural gas (PNG) connections has been increasing,” he stated.
Mr. Nath added the disruptions have also led to people trying out electric cooking as well.
Petrol consumption up, diesel marginally up
India consumed 3.89 MMT of petrol in May this year, higher than 3.78 MMT it did in the same month last year.
Meanwhile, consumption of diesel stood at 8.67 MMT in May compared to about 8.59 MMT in the comparable period last year.
Specifically reflecting on diesel, Mr. Vaishisht explained consumption of diesel has moved from a higher base to a slightly higher base.
While he attributed the increased demand for diesel to a harsher summer this year and increased demand alongside increased industrial demand, he stated that standalone increased demand from agriculture would not have a significant impact.
“Generally, [consumption of] diesel grows between 2-3% and petrol 5-6%,” he said, adding, “While agricultural demand does add to volumes, the diesel pool is vast – ranging from moving goods to industries – therefore, [despite increased agricultural demand increasing], it will not be that high.”
Published – June 02, 2026 08:12 pm IST
