India’s demand for refined petroleum products (auto fuels) hit a six-month high of 21.27 million tonnes in November, data from the Petroleum Planning and Analysis Cell showed. The demand grew 5.4% from 20.16 million tonnes in October. On an annual basis, the country’s fuel consumption grew by 3%.
The growth in consumption of petroleum products was driven by growth in demand for diesel and aviation turbine fuel (ATF). While diesel consumption rose 12.2% to 8.5 million tonnes from 7.6 million tonnes in October, demand for ATF climbed 1.9% to 788,000 tonnes. Consumption of petrol, however, registered a decline of 4% to 3.5 million tonnes in November from the previous month.
LPG consumption records decline
Consumption of liquified petroleum gas (LPG) declined marginally by 0.3% remaining at 2.86 million tonnes from October consumption levels. The country’s import of petroleum products stood at 29.8 million tonnes during April-October, up by 1% from the same period of last fiscal, as per PPAC’s latest data.
India’s exports of petroleum products however, remained muted at 37 million tonnes during the seven-month period. For FY26, the country has projected its domestic petroleum product demand to reach a record 252.9 million tonnes. The country is the world’s third-largest consumer and importer of crude oil.
Russian crude imports
In recent years, India has become the largest buyer of Russian crude, owing to the discounts on Russian barrels after the West imposed sanctions on Moscow over its conflict with Ukraine. India’s purchases of Russian oil turned stronger and hit a 5-month high of 1.8 million barrels per day in November. Shipments of Russian grade accounted for over 35% of the country’s total crude import mix in the month, as per data from Kpler.
The surge in inward shipments of Urals was due to front-loaded arrivals ahead of the November 21 deadline for the US sanctions on two large Russian oil companies — Rosneft and Lukoil — to take effect. Refiners accelerated scheduling and speeded up vessel turnarounds, particularly for Rosneft- and Lukoil-linked cargoes.
Looking ahead, the country’s imports of Russian barrels is expected to go down to 1.0-1.2 million bpd in December, a record low, owing to the latest sanctions announced by the US. During the 23rd India–Russia Summit, Russian President Vladimir Putin said Moscow is prepared to continue uninterrupted shipments of fuel for the fast growing Indian economy.