New Delhi: India’s petroleum product consumption rose 3.9 per cent year-on-year in September 2025 to 18.63 million metric tonnes (mmt), driven mainly by higher diesel and petrol demand, according to a sector update by YES Securities.
Diesel consumption increased 6.6 per cent year-on-year and 3.3 per cent month-on-month to 6.79 mmt, while petrol usage rose 8 per cent year-on-year to 3.4 mmt, though both remained below their May peaks. Aviation turbine fuel (ATF) consumption stood at 0.72 mmt, marginally lower than last year, and LPG demand was up 7.3 per cent year-on-year at 2.79 mmt.
In the second quarter of FY26, overall petroleum oil and lubricants (POL) consumption stood at 56.7 mmt, registering a 0.2 per cent year-on-year increase but a 7.9 per cent sequential decline. For the first half of FY26, total POL consumption reached 118.39 mmt, marking a 1.1 per cent annual rise.
Diesel accounted for 45.7 mmt of this, up 3 per cent year-on-year, followed by petrol at 21.2 mmt (up 6.9 per cent), ATF at 4.4 mmt (up 1 per cent) and LPG at 16.1 mmt (up 7.6 per cent). As per the Petroleum Planning and Analysis Cell (PPAC), India’s total consumption for FY26 is projected at 250.3 mmt, compared to 238.7 mmt in FY25.
Gross marketing margins for October stood at ₹5.3 per litre for diesel and ₹7.7 per litre for petrol, lower than the previous quarter’s average but still above pre-regulated levels due to lower crude prices. In the first half of FY26, both products averaged around ₹8.5 per litre.
YES Securities noted that Indian refiners continue to benefit from strong refining cracks, with gasoil and gasoline margins at $20.4/bbl and $10.2/bbl, respectively. “Refiners are reaping the benefit of better product cracks, strong demand, and discounted crude from Russia,” the report said.
Russia remained India’s largest crude oil supplier in the quarter, contributing about 1.6 million barrels per day (mb/d), or 34 per cent of total imports. Supplies had peaked at nearly 2 mb/d in August 2025 before stabilising in September. The average crude discount from Russia remained between $2–3 per barrel, the report added.
India’s key refining margins also remained firm, with Singapore gross refining margins averaging $4.1 per barrel in the quarter.
The report attributed the sustained demand to government-led infrastructure investments and economic recovery, with vehicular fuels — diesel, petrol, and ATF — comprising about 59 per cent of total petroleum product consumption.
