India's liquefied petroleum gas consumption fell 16.15 per cent year on year in August to two point four two million (mn) tonnes (t), down from two point eight nine million (mn) tonnes (t) a year earlier, while petrol and diesel demand rose. Petrol increased seven point eight eight per cent to three point eight two mn t, and diesel rose six point four six per cent to seven mn t, provisional data from the Petroleum Planning and Analysis Cell showed.

Since the onset of the West Asia crisis in late February the country has faced import pressures owing to heavy dependence on imported LPG and shipments through the Strait of Hormuz, which reduced availability and tightened supplies. The government introduced measures to reduce LPG dependence, including incentives for city gas distributors to expand piped natural gas (PNG) connections and policies to encourage consumers to shift from cylinders to PNG where accessible.

The growth in petrol consumption was supported by deficient rainfall that enabled greater movement on roads and by travellers increasingly preferring road transport over flights for shorter journeys, according to official commentary. Diesel benefited from a lower base in the year ago period and continued activity in manufacturing, freight movement and agriculture, underpinned by strong gross domestic product growth.

Aviation turbine fuel demand rose one point four per cent to 720,000 t in August from 710,000 t. Over April to August petrol volumes increased six point four eight per cent to 18.94 mn t, diesel rose four point two nine per cent to 40.56 mn t, and ATF consumption slipped zero point five seven per cent to three point six eight mn t.

Across the five month period LPG consumption fell 15.89 per cent to 11.29 mn t from 13.42 mn t, reflecting substitution and supply constraints. Monitoring of imports and continued policy support for gas network expansion will shape medium term consumption patterns.