India’s energy consumption saw a marked uptick in the first half of May, as seasonal travel, rising temperatures, and agricultural activity boosted demand for key fuels. Petrol usage jumped by over 10% year-on-year, while diesel consumption edged up 2% amid rural and transport-sector demand. Although aviation fuel posted modest growth due to regional flight restrictions, cooking gas continued its strong upward trend, powered by government-backed Ujjwala connections. The data, based on sales from state-run oil retailers who dominate 90% of the market, signals an active economy rebounding from pandemic-era lows and adapting to evolving consumption dynamics.
Petrol Demand Accelerates with Summer Travel Surge
India’s petrol consumption rose significantly in early May, with a reported 10.5% year-on-year increase, reaching approximately 1.5 million tonnes between May 1 and 15. This growth, attributed largely to a seasonal spike in intercity and leisure travel, underscores the strong resurgence in mobility across the country.
Compared to the pandemic-impacted levels of May 2021, petrol usage during the first fortnight of this month was nearly 46% higher. This jump reflects not only normalization of consumer behavior but also increased vehicle ownership and road usage trends, particularly in urban and tier-two cities.
Diesel Uptick Signals Modest Rural and Transport Revival
Diesel, the backbone of India’s transport and agricultural economy, also showed a recovery trajectory with sales touching 3.36 million tonnes in the same period—marking a 2% year-on-year growth. This represents a continuation of the rebound that began in April, when diesel consumption reached 8.23 million tonnes, up 4% over the previous year.
While diesel had seen sluggish growth in the past fiscal year, rising just 2% by March 31, 2025, recent activity suggests renewed demand driven by irrigation needs in rural regions and the heightened logistical movement linked to the election season. Sales also rose 5.2% over the first half of April 2025, reinforcing confidence in the sector’s revival.
Aviation Fuel Faces Turbulence Amid Regional Airspace Disruptions
Jet fuel, or aviation turbine fuel (ATF), saw its growth slow to 1.1% in the first half of May, totaling 327,900 tonnes. The modest increase was dampened by restricted airspace over parts of northern and western India due to geopolitical tensions with Pakistan, curbing flight activity in the region.
Despite the temporary setback, ATF demand was still 8.6% higher than in the same period last year and 11% above levels recorded in early May 2021. However, on a month-on-month basis, consumption declined 5.8% from the 348,100 tonnes used during April 1–15, indicating sensitivity to external disruptions.
LPG Consumption Remains Robust, Driven by Rural Adoption
Cooking gas (LPG) remained a standout performer in India’s energy matrix, registering a 10.4% year-on-year increase to 1.34 million tonnes in the first half of May. The surge was largely propelled by continued distribution under the Ujjwala scheme, which has been instrumental in expanding LPG access to rural and low-income households.
Sales were up 10% compared to the 1.22 million tonnes consumed in the same period last year and 33% higher than early May 2021. On a sequential basis, LPG demand rose 7.3% from the first fortnight of April, signaling sustained momentum in household energy use.
Since 2019, LPG consumption has added volumes equivalent to nearly five months of typical usage, demonstrating the transformative impact of policy-led inclusion on India’s domestic energy landscape.
Broader Implications: Fuel Consumption Mirrors Economic Recovery
The multi-fuel consumption pattern emerging from early May data reflects an encouraging outlook for India’s energy demand and economic momentum. The sharp rebound in petrol and LPG use, coupled with a recovering diesel market, paints a picture of resurgent mobility, consumer confidence, and rural productivity.
While aviation fuel remains vulnerable to regional instabilities, overall demand metrics suggest that India’s energy consumption is on a steady upward trajectory, signaling broader macroeconomic stabilization and growth.
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