India diesel sales jump 10.7% in July; petrol up 9.7% on robust demand
Synopsis
India's diesel demand hit 7.12 million tonnes in July — up 10.7% year-on-year and 12.7% above July 2023 — as a delayed monsoon forced farmers onto diesel pumps and new highways drove freight volumes higher. The flip side: LPG sales cratered 17.4% as the Strait of Hormuz crisis accelerated India's forced pivot to piped gas.
Key Takeaways
Diesel sales rose 10.7% year-on-year to 7.12 million tonnes in July , the highest in three years.
Petrol sales grew 9.7% to 3.45 million tonnes over the same period.
Jet fuel (ATF) volumes rose 2.9% year-on-year to 659,900 tonnes , but fell 4.6% sequentially due to monsoon flight cancellations.
LPG sales dropped 17.4% to 2.37 million tonnes , hit by Strait of Hormuz supply disruptions and a government push toward piped natural gas.
The three oil majors — Indian Oil , BPCL , and HPCL — reported the data for July 2025 .
Indian Oil, Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) — India's three leading oil marketing companies — posted strong year-on-year fuel sales growth in July, with diesel volumes surging 10.7% and petrol climbing 9.7%, reflecting elevated economic activity across agriculture and transport sectors.
Diesel Demand Surges on Monsoon Delay and Highway Growth
Diesel, India's most consumed fuel, rose to 7.12 million tonnes in July, up from 6.43 million tonnes in the same month last year. The 10.7% year-on-year jump was driven by a delayed monsoon season that compelled farmers to rely on diesel-powered pumps during the critical kharif sowing period.
The commissioning of new highways and expressways over the past year also boosted commercial traffic, lifting truck and bus fuel consumption. Notably, July's diesel offtake was 11.5% above the same month in 2024 and 12.7% higher than 2023, pointing to a sustained multi-year demand uptrend rather than a one-off spike.
Petrol and Jet Fuel Sales Also Rise
Petrol sales by the three oil majors grew 9.7% to 3.45 million tonnes in July, compared with 3.14 million tonnes in July last year, tracking rising personal vehicle usage and expanding urban mobility.
Jet fuel (ATF) sales edged up 2.9% year-on-year to 659,900 tonnes. However, on a sequential basis, ATF volumes fell 4.6% from 691,700 tonnes in June, as inclement monsoon weather forced flight cancellations across several routes during the month.
LPG Sales Fall Sharply Amid Hormuz Disruption
Liquefied petroleum gas (LPG) was the notable exception, with sales declining 17.4% to 2.37 million tonnes in July. The government has been actively encouraging consumers to shift to piped natural gas (PNG) as part of a broader fuel diversification strategy, triggered by supply disruptions linked to the choking of the Strait of Hormuz amid the ongoing West Asia crisis.
Commercial LPG sales to hotels and restaurants were also curtailed due to the same supply constraints, compounding the overall decline. This marks a structural policy inflection — not merely a demand-side dip — as the Centre accelerates the PNG rollout to reduce import dependency.
What the Numbers Signal
The fuel consumption data broadly reflects healthy underlying economic momentum in India during July. Diesel's multi-year growth trajectory aligns with expanding road freight activity, while petrol's rise tracks sustained consumer spending. The LPG contraction, however, underscores the real-world supply-chain stress stemming from geopolitical instability in West Asia, and the pace of the PNG transition will be closely watched in the months ahead.
Point of View
But it also means the country's fuel import bill is rising at an uncomfortable pace. The LPG collapse is the sharper story: a 17.4% drop in a single month is not organic demand destruction, it is a geopolitical shock being absorbed in Indian kitchens and restaurant kitchens alike. The Centre's pivot to PNG is the right long-term call, but the speed of the Hormuz disruption has outpaced infrastructure rollout, leaving a coverage gap that policy cannot paper over quickly.
NationPress
2 Aug 2026
Frequently Asked Questions
Why did India's diesel sales rise sharply in July?
Diesel sales climbed 10.7% year-on-year to 7.12 million tonnes in July, driven by two main factors: a delayed monsoon that pushed farmers to use diesel-powered irrigation pumps during peak sowing, and increased commercial traffic on newly commissioned highways and expressways.
How much did petrol sales grow in July?
Petrol sales by Indian Oil, BPCL, and HPCL rose 9.7% to 3.45 million tonnes in July, compared with 3.14 million tonnes in the same month last year, reflecting sustained growth in personal vehicle usage.
Why did LPG sales fall so sharply in July?
LPG sales declined 17.4% to 2.37 million tonnes in July, primarily due to supply disruptions caused by the choking of the Strait of Hormuz amid the West Asia crisis. The government has also been encouraging consumers to switch to piped natural gas to reduce import dependency, further dampening LPG demand.
What happened to jet fuel sales in July?
Jet fuel sales rose 2.9% year-on-year to 659,900 tonnes in July, but fell 4.6% compared with June's 691,700 tonnes, as monsoon-related bad weather led to flight cancellations across India.
Which companies reported the July fuel sales data?
The data covers the combined sales of India's three state-owned oil marketing companies — Indian Oil Corporation, Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL).
