India’s Fuel Sector Shows Strong Year-on-Year Growth Despite Seasonal Dip
New Delhi — India’s fuel consumption in September reached 18.63 million metric tons, reflecting a slight seasonal dip compared with August but demonstrating a robust 7% year-on-year growth, according to oil ministry data.
The slowdown is typical during the monsoon season, yet the overall figures highlight India’s resilient energy demand and growing consumption across key sectors.
While petrol sales dipped slightly from 3.54 million tons in August to 3.40 million tons, they were up 7.9% compared with September 2024, reflecting a strong recovery in urban mobility and transportation needs.
Diesel consumption also showed a positive trajectory, rising to 6.79 million tons in September, a 6.6% increase year-on-year, demonstrating continued demand for logistics, freight, and industrial activity.
Liquefied petroleum gas (LPG) sales recorded a 6.9% rise from the same period last year, reaching 2.79 million tons, reflecting ongoing adoption of cleaner cooking fuels and the success of government initiatives to promote household energy access. Bitumen demand surged by 33% year-on-year to 0.56 million tons, highlighting the expansion of road infrastructure projects and urban development across the country.
The small dip in total monthly fuel consumption compared with August is consistent with seasonal patterns, and analysts note that overall demand remains strong.
UBS analyst Giovanni Staunovo observed that while the monsoon temporarily slows monthly growth, the year-on-year acceleration across all major fuel products underscores India’s energy resilience and the sector’s long-term upward trajectory.
Indian refiners are also expanding exports of petrol and diesel, taking advantage of increased crude processing capacity and higher domestic ethanol blending, which frees up surplus fuel for overseas markets.
This strategy not only strengthens India’s position in the global energy market but also demonstrates the sector’s adaptability and capacity to meet both domestic and international demand.
Moreover, India continues to benefit from strategic sourcing of discounted Russian crude, enabling refiners to maintain stable production levels and contribute to both domestic supply and export growth.
Despite global energy market uncertainties, Indian refiners are positioned to optimize supply chains and maximize production efficiency, supporting sustainable growth in fuel consumption and energy security.
The oil sector’s performance in September highlights long-term positive trends, including rising urban mobility, industrial expansion, infrastructure development, and household energy access.
Diesel, petrol, LPG, and bitumen sales show healthy annual growth, reflecting both economic activity and ongoing investments in logistics, transportation, and infrastructure projects nationwide.
In conclusion, while monthly fuel consumption may fluctuate due to seasonal factors, India’s energy demand remains robust and resilient, with year-on-year growth across multiple fuel categories.
The sector continues to demonstrate strength, adaptability, and strategic expansion, ensuring that India maintains its position as a key player in the global energy market while supporting domestic economic growth and infrastructure development.
