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Fuel consumption trends in India’s energy market are rapidly changing. The latest data for July 2026 has revealed that consumers are shifting away from traditional gas and toward modern and affordable alternatives. According to data released by the country’s major state-owned oil companies, while demand for petrol and diesel saw a significant surge in July, sales of cooking and commercial gas (LPG) declined significantly. The primary reason behind this shift is that hotels, restaurants, and many industrial units are increasingly prioritizing piped natural gas (PNG) over LPG cylinders. Let’s explore in detail what new market signals these July data have provided.

There has been a surge in demand for petrol and diesel, boosting the economy.

According to combined data from the country’s three major state-owned oil companies—Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL), petrol sales across the country increased by 9.7 percent year-on-year to 3.45 million tonnes in July, compared to 3.14 million tonnes in the same month last year. However, petrol sales did decline slightly by 1.1 percent compared to June. Furthermore, diesel demand, considered a key indicator of the country’s economic activity and transport sector, also recorded a strong 10.7 percent increase, reaching a total of 7.12 million tonnes. Experts believe that due to the delayed monsoon season, farmers had to extensively use diesel-powered pumps for sowing and irrigation, which significantly boosted diesel demand.

Air travel coverage increases, ATF demand also jumps

A positive trend has also been observed in the demand for aviation turbine fuel (ATF), which is to the transport and tourism sectors. In the month of July, the total demand for ATF increased by 2.9 percent year-on-year to approximately 6.60 lakh tonnes. Although its sales have slightly declined by 4.6 percent compared to the previous month i.e. June, but this continuous increase on an annual basis is a clear indication that the scope and popularity of air travel in the country is continuously increasing.

Historic decline in LPG demand, PNG is becoming the first choice

The most significant and surprising change in these July figures was seen in LPG consumption. Total LPG sales declined by 17.4 percent in July, falling to 2.37 million tonnes. Energy sector experts and industry officials say that when LPG supplies were disrupted during the Middle East crisis, many hotels, restaurants, catering, and industrial consumers were forced to switch to piped natural gas (PNG). However, now that the supply chain has fully returned to normal, most commercial consumers have preferred to continue using PNG rather than reverting to LPG, as it is proving to be a more convenient and consistently available option.