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India’s May fuel use rose from April, but the yearly fall showed pressure in LPG, construction fuel and household energy costs.
Key Highlights
India consumed 19.93 million metric tonnes of fuel in May 2026, up from 19.47 million tonnes in April, but down 6.5% from May 2025, according to Petroleum Planning and Analysis Cell data reported by Reuters on June 9, 2026.
The data covers India’s domestic petroleum product consumption and appears on PPAC’s product-wise consumption section under the Ministry of Petroleum and Natural Gas.
The short-term pressure may show up in LPG availability, transport bills and small business fuel spending. The long-term risk is higher energy cost for households, freight operators and construction-linked sectors if LPG imports, crude prices and retail fuel hikes stay unstable.
The main story is mixed. Diesel helped the monthly recovery, but LPG, naphtha and bitumen pulled down the annual trend. Reuters reported that petrol stood at 3.91 million tonnes in May against 3.68 million tonnes in April, while LPG declined to 2.13 million tonnes from 2.21 million tonnes in April.
The table below gives the core numbers from Reuters and PPAC-linked data.
Diesel rose 4.8% from April and 1.6% year-on-year. That points to continued road transport, freight and farm-linked movement. But LPG’s yearly fall of about 20% is the bigger household signal, especially for families and small food businesses.
Households may notice the LPG pressure first. Times of India reported on June 3, 2026 that LPG sales fell over 19% year-on-year in May, while petrol and diesel consumption grew 2.8% and 1%, respectively.
There is also a small positive for mobility. Diesel demand stayed higher year-on-year, which means goods movement did not collapse. For consumers trying to control fuel spending, LoansJagat’s January 13, 2026 guide on SBI BPCL credit card benefits says fuel surcharge waiver applies to transactions between ₹500 and ₹4,000.
The May numbers came after an earlier LPG fall. Reuters reported on May 4, 2026 that India’s April LPG consumption dropped 16.2% year-on-year to 2.2 million tonnes. The pressure was linked to supply disruption after the closure of the Strait of Hormuz.
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The table below shows how the pressure built over 2 months.
Reuters also reported on June 8, 2026 that fuel and food costs likely pushed India’s May inflation towards 4%. That means fuel trends are not only an oil sector story. They can affect household budgets, delivery prices and wider inflation readings.
Oil Minister Hardeep Singh Puri said India had adequate reserves and expected oil and gas prices to ease in coming months, Reuters reported on June 9, 2026. Congress asked the government to absorb the oil price shock instead of passing it to consumers.
The practical fix is stronger LPG stock planning, wider sourcing, tighter monitoring of retail fuel hikes and targeted relief for low-income cooking gas users.
India’s May fuel data showed a monthly recovery, but LPG weakness kept the annual trend under pressure. June fuel numbers will show whether supply stress and price hikes are easing or spreading further.
What Happened To India’s Fuel Consumption In May 2026?
India’s fuel consumption rose month-on-month to 19.93 million tonnes, but fell 6.5% year-on-year.
Which Fuel Product Fell The Most In May 2026?
LPG was the biggest concern, falling to 2.13 million tonnes and slipping about 20% year-on-year.
Why Did Diesel Demand Improve In May 2026?
Diesel demand improved due to freight movement, road transport, rural activity and farm-linked use.
Where Is The Official Fuel Data Published?
PPAC publishes product-wise domestic petroleum consumption data under the Consumption section of its official website.
Why are petrol prices still high in India even when crude oil falls?
India’s petrol bill does not fall quickly because taxes, VAT, rupee value, dealer cuts and oil company losses keep pump prices high.
Why does fuel price keep changing in Indian cities?
etrol and diesel rates shift because crude prices, rupee value, taxes, state VAT, transport charges and company costs change from time to time.
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