India’s appetite for transport fuels remained largely unaffected by the steepest fuel price increase in nearly four years, with consumption of petrol and diesel continuing to rise in May despite cumulative retail price hikes of over ₹7 per litre and elevated global crude oil prices.
Data released by the Petroleum Planning and Analysis Cell (PPAC) showed overall petroleum product consumption rose 2.38% month-on-month to 19.93 million metric tonnes (MMT) in May from 19.47 MMT in April, driven by higher demand for road transport fuels and aviation fuel.
Petrol consumption increased 6.1% month-on-month to 3.91 million tonnes in May from 3.68 million tonnes in April. On a year-on-year basis, petrol demand grew 3.4% from 3.78 million tonnes recorded in May 2025. Compared with 3.35 million tonnes consumed in May 2024, petrol sales have risen nearly 16.7% over two years, reflecting sustained growth in personal mobility despite higher fuel costs.
Diesel demand, a key indicator of freight movement and economic activity, also remained firm. Consumption rose 4.8% month-on-month to 8.73 million tonnes in May from 8.33 million tonnes in April. Diesel sales were 1.6% higher than the 8.59 million tonnes consumed in May last year and over 6% higher than the 8.22 million tonnes recorded in May 2024.
The growth came despite a sharp increase in fuel prices during the month. Petrol and diesel prices were raised by a cumulative ₹7.35-7.53 per litre, the first major increase in nearly four years, as state-run oil marketing companies passed on part of the impact of soaring crude oil prices triggered by the West Asia conflict. The crisis disrupted crude supply chains, increased freight and insurance costs, and pushed up India’s energy import bill. The hikes have directly added to transportation and household expenses, yet the latest consumption data suggests mobility and freight activity have remained resilient.
Together, petrol and diesel accounted for nearly 63% of India’s total petroleum product consumption in May, underlining the continued strength of transport fuel demand despite rising retail prices.
Aviation turbine fuel (ATF) consumption also maintained its upward trajectory. Demand rose 1.6% month-on-month to 783 thousand tonnes in May from 771 thousand tonnes in April. Compared with 744 thousand tonnes in May 2025, ATF consumption increased 5.2%, while demand was nearly 16.7% higher than the 671 thousand tonnes recorded in May 2024, reflecting sustained growth in domestic and international air travel.
LPG consumption, however, moved in the opposite direction. Demand declined 3.5% month-on-month to 2.13 million tonnes in May from 2.21 million tonnes in April and was also below the 2.41 million tonnes recorded in the corresponding month last year.
PPAC data showed overall petroleum product consumption during May stood at 19.93 million tonnes, compared with 21.31 million tonnes in May 2025, translating into a 5.1% year-on-year decline. However, the agency noted that consumption during the month was supported by growth in motor spirit (petrol) and high-speed diesel (HSD), the country’s two most consumed transport fuels.
Among other products, fuel oil and low sulphur heavy stock consumption increased sharply to 625 thousand tonnes in May from 486 thousand tonnes in April, while lubricants and greases consumption rose to 382 thousand tonnes from 362 thousand tonnes during the period.
For the first two months of FY27, petrol consumption stood at 7.59 million tonnes, while diesel demand reached 17.06 million tonnes, taking cumulative consumption of the two fuels to nearly 24.7 million tonnes. Overall petroleum product consumption during April-May FY27 stood at 39.4 million tonnes.
TOPICSDieselfuelPetrol PricePetroleumThis article was first uploaded on June eight, twenty twenty-six, at fourteen minutes past seven in the evening. © The Indian Express (P) Ltd