LPG consumption fell by a sharp 503 thousand metric tonnes (TMT), or 19.16% year-on-year, to 2.12 million tonnes in May, marking the steepest decline among major petroleum products, even as petrol demand continued to outpace diesel growth, highlighting a widening divergence in India’s fuel consumption pattern amid government demand-management measures and record-high commercial LPG prices, according to the data released by the Petroleum Planning & Analysis Cell (PPAC).

PPAC data showed LPG consumption declined to 2,119 TMT in May 2026 from 2,622 TMT in May 2025 and 2,456 TMT in May 2024. Compared with May 2024, LPG demand was lower by 337 TMT, or 13.71%, making it the weakest-performing major fuel segment during the month.

“LPG consumption had reduced due to demand-management measures, while rising commercial LPG prices have also prompted a shift by some consumers towards alternative measures,” a senior official said on the request not to be identified.

The decline comes at a time when the government has been regulating LPG supplies to commercial consumers following disruptions in imports linked to the West Asia conflict. 

“Lower LPG consumption reflects a combination of demand-management measures, including DAC-based controls and restrictions on LPG booking periods,” an industry analyst said.

In contrast, petrol consumption rose to 3,888 TMT in May from 3,782 TMT a year earlier and 3,463 TMT in May 2024. Demand increased by 106 TMT, or 2.8% year-on-year, and by 425 TMT, or 12.28%, compared with May 2024, making petrol the fastest-growing major transport fuel in the country.

The growth in petrol demand remained significantly higher than diesel, India’s most-consumed petroleum product. Diesel consumption increased to 8,674 TMT from 8,592 TMT in May 2025 and 8,412 TMT in May 2024. This translated into an increase of 82 TMT, or 0.95%, over last year and 262 TMT, or 3.11%, compared with May 2024.

Aviation turbine fuel (ATF) consumption stood at 770 TMT in May 2026 compared with 776 TMT a year earlier and 744 TMT in May 2024. ATF demand declined by 6 TMT, or 0.78%, year-on-year, though it remained 26 TMT, or 3.55%, higher than May 2024 levels.

The divergence was even more visible in cumulative consumption during the first two months of FY27.

Petrol consumption during April-May FY27 rose by 325 TMT, or 4.5%, to 7,557 TMT from 7,232 TMT in the corresponding period of FY26. Diesel demand increased by 103 TMT, or 0.61%, to 16,956 TMT from 16,853 TMT, while ATF consumption declined by 17 TMT, or 1.07%, to 1,531 TMT from 1,548 TMT.

LPG remained the weakest-performing fuel segment on a cumulative basis as well. Consumption during April-May FY27 fell by 916 TMT, or 17.54%, to 4,310 TMT from 5,226 TMT in the year-ago period.

Meanwhile, the petroleum sector’s contribution to India’s export basket also weakened during FY26. According to PPAC, the share of petroleum products in India’s gross exports fell to 8.8% in FY26 on a provisional basis, down from 10.1% in FY25 and 10.9% in FY24, marking the lowest share in more than a decade, excluding the Covid-affected FY21.

The decline came as India’s petroleum product exports contracted 5.5% year-on-year in FY26, largely due to lower shipments of diesel and aviation turbine fuel (ATF). Diesel exports fell 2.5% to 27.32 million tonnes (provisional), extending a three-year decline, while ATF exports dropped sharply by 20.35% to 6.81 million tonnes, PPAC data showed.