India's August Fuel Demand Falls 2.8% Despite Strong Gasoline, Diesel Sales

India's total fuel consumption fell by 2.8% in August compared to the same month in 2025, reflecting a mixed picture of economic activity. The country consumed a total of 18.61 million metric tons of fuel during the month, according to provisional data released by the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry.

Transportation Fuels Show Strength

Despite the overall decline, demand for key transportation fuels remained strong, suggesting resilient mobility and commercial activity. Sales of gasoline and diesel, which together account for more than half of India's fuel consumption, saw significant year-over-year increases.

• Gasoline: Sales rose by 8.2% to 3.84 million metric tons.
• Diesel: Consumption, a key barometer for industrial health, increased by 6.8% to 7.02 million metric tons.

Industrial and Household Fuels Decline

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The headline drop in consumption was primarily driven by sharp decreases in demand for liquefied petroleum gas (LPG) and naphtha. This offset the growth seen in other sectors like transportation and construction.

Sales of LPG, primarily used as cooking gas in households, fell by 17.2% to 2.35 million metric tons. Naphtha sales, a key industrial and petrochemical feedstock, plunged by 22.3% to 830,000 metric tons.

In contrast, bitumen, used for road construction, saw sales jump by 19.8%, while fuel oil consumption rose by 4.8%. As the world's third-largest oil importer and consumer, India's fuel demand data is closely watched by global energy markets as an indicator of its economic trajectory.