Petrol Demand Surges 10% in Early May; Diesel and LPG See Modest Growth

Strong Travel Season Drives Fuel Consumption Across India​

New Delhi, May 16 — India witnessed a sharp rise in petrol consumption during the first half of May 2025, with demand surging by 10.5 per cent year-on-year as increased travel amid peak summer drove fuel usage higher, according to provisional sales data from state-run fuel retailers.
Petrol sales climbed to 1.5 million tonnes between May 1–15, up from 1.36 million tonnes in the same period in 2023 and 1.37 million tonnes a year ago. Compared to the pandemic-affected May 2021, petrol consumption was nearly 46 per cent higher, underlining the strong rebound in mobility and travel.

Diesel Consumption Rebounds Amid Seasonal Demand​

Diesel, which powers much of India’s transport and agricultural machinery, posted a 2 per cent year-on-year increase in consumption to 3.36 million tonnes during the first half of May. The demand recovery follows an uptick in April, when diesel consumption rose to 8.23 million tonnes, up 4 per cent compared to April 2024.
Compared to the first half of April 2025, diesel usage grew 5.2 per cent from 3.19 million tonnes, indicating growing rural and transportation-related activity. Officials attribute this trend to rising irrigation needs during the summer and increased air-conditioning usage in urban regions.
However, diesel had earlier shown sluggish growth, recording just 2 per cent expansion in the financial year ending March 2025, triggering concerns about its long-term trajectory. Industry experts noted that recent growth could also be linked to heightened activity due to elections.

Aviation Turbulence Impacts Jet Fuel Sales​

Jet fuel (ATF) consumption saw muted growth of 1.1 per cent, totaling 3,27,900 tonnes during May 1–15. Demand was impacted by flight restrictions in northern and western India amid regional tensions with Pakistan.
Despite this slowdown, ATF sales were 8.6 per cent higher than in the same period in 2023 and 11 per cent more than May 2021. On a sequential basis, however, jet fuel consumption dropped 5.8 per cent from 3,48,100 tonnes recorded in April 1–15.

LPG Consumption Accelerates, Boosted by Ujjawala Scheme​

Liquefied Petroleum Gas (LPG) maintained its growth momentum, clocking a 10.4 per cent year-on-year increase in consumption to 1.34 million tonnes in the first half of May. This was fueled by continued demand from domestic users and increased connections under the Ujjawala scheme.
LPG sales were up from 1.22 million tonnes in May 2023 and 1.01 million tonnes in May 2021, registering a 33 per cent growth over the Covid-impacted year. Month-on-month, LPG consumption rose 7.3 per cent from 1.25 million tonnes in the first half of April.
Since 2019, domestic cooking gas usage has added volumes equivalent to almost five months of average consumption, reflecting the program’s impact on rural and low-income households.

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Key Consumption Data: May 1–15, 2025
India’s fuel demand reflects strong seasonal activity, increasing domestic mobility, and economic rebound, though external factors such as geopolitical tensions continue to influence specific segments like aviation fuel.