India’s domestic petroleum consumption recorded a slight decline in January 2026 compared to December 2025 yet posted a steady increase on a year-on-year basis, according to provisional data from the Petroleum Planning & Analysis Cell (PPAC). The numbers reflect both seasonal fluctuations and the resilience of the country’s fuel demand.

Month-on-Month Consumption Slips
Total petroleum consumption in January stood at 21.05 million metric tonnes (MMT), down from 21.71 MMT in December 2025. The decline was mainly due to reduced diesel, petrol, and bitumen usage, indicating a short-term cooling in transportation and construction activity. Diesel consumption fell to 7.992 MMT, while petrol (Motor Spirit) dipped to 3.511 MMT, and bitumen usage declined to 0.797 MMT. These numbers suggest a temporary slowdown, likely influenced by seasonal factors and end-of-year adjustments.

Year-on-Year Growth Remains Strong
On a yearly basis, petroleum consumption in January grew 2.5% compared to January 2025, signaling sustained demand. LPG, petrol, ATF, and diesel led this growth, with increases of 7.0%, 6.1%, 5.5%, and 3.3% respectively. The numbers indicate that household consumption, transportation, and industrial sectors continue to drive energy demand across the country, reinforcing India’s position as a key fuel market in Asia.

LPG and Aviation Fuel Show Resilience
Despite the overall decline, certain products maintained strong demand. Liquefied Petroleum Gas (LPG) consumption remained robust at 3.033 MMT, driven by household energy requirements. Aviation Turbine Fuel (ATF) also rose to 828,000 MT, reflecting increased air travel and connectivity post-holiday season.

Minor fluctuations were observed in kerosene, lubricants, and petroleum coke, but overall demand for these products remained stable, highlighting steady industrial and commercial activity.

Implications for the Energy Sector
India’s petroleum trends remain closely watched by domestic and global stakeholders, as the country is now the third-largest oil consumer in the world. Analysts note that the steady year-on-year growth demonstrates resilience in the economy, despite short-term monthly fluctuations. The data highlights the critical role of petroleum products in supporting both daily life and industrial growth, and suggests that seasonal dips are unlikely to significantly alter the overall demand trajectory.

Conclusion: Stable Demand Amid Seasonal Dips
January’s figures underscore a temporary month-on-month slowdown, yet a clear upward trend year-on-year, reflecting steady energy consumption across sectors. With households, industries, and aviation driving growth, India’s petroleum market continues to demonstrate strength and stability. Observers expect that demand will remain robust in the coming months, reinforcing the nation’s long-term energy outlook.

Disclaimer:

The information available on this article is provided for education and informational purposes only. It does not constitute or provide financial, investment or trading advice and should not be construed as an endorsement of any specific stock or financial strategy in any form or manner. We do not make any representations or warranties regarding the quality, reliability, or accuracy of the information provided. This website may contain links to third-party content. We are not responsible for the content or accuracy of these external sources and do not endorse or verify the information provided by third parties. We are not liable for any decisions made or actions taken based on the information provided on this website.

Copyright 2026 Krish Capital Pty. Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.