India's Fuel Consumption Reaches Record High of 21.75 Million Metric Tons in December
India's fuel consumption reached a record high of 21.75 million metric tons in December, up 5.3% year-on-year and marking the highest monthly figure since data collection began in April 1998. Petrol sales rose 7.1% annually to 3.56 million tons, while diesel increased 5% to 8.46 million tons, and LPG showed the strongest growth at 11.2% to reach 3.08 million tons. The milestone comes amid ongoing trade discussions about India's Russian oil purchases, with potential tariff implications.
*this image is generated using AI for illustrative purposes only.
India's fuel consumption reached a historic milestone in December, with total demand hitting 21.75 million metric tons, marking a 5.3% year-on-year increase and setting the highest monthly record since data collection began in April 1998. The achievement underscores India's position as the world's third-largest consumer and importer of oil, as well as the largest buyer of Russian seaborne crude.
Record-Breaking Fuel Consumption Data
Data released by the oil ministry's Petroleum Planning and Analysis Cell (PPAC) revealed comprehensive fuel consumption patterns across various petroleum products:
| Product | December | November | Year-on-Year Change |
|---|---|---|---|
| Total Consumption | 21.75 million tons | 21.27 million tons | +5.3% |
| Diesel | 8.46 million tons | 8.55 million tons | +5.0% (YoY) |
| Petrol | 3.56 million tons | 3.52 million tons | +7.1% (YoY) |
| LPG | 3.08 million tons | 2.86 million tons | +11.2% (YoY) |
Segment-Wise Performance Analysis
Petrol sales demonstrated robust growth, standing at 3.56 million metric tons in December, representing a 1.1% increase from November and a significant 7.1% rise from the previous year. Diesel consumption reached 8.46 million tons, showing a 5% annual increase despite a 1.1% month-on-month decline.
Liquefied petroleum gas emerged as the strongest performer with an 11.2% year-on-year surge to 3.08 million tons. Other petroleum products showed mixed results:
| Product Category | December Volume | Annual Change |
|---|---|---|
| Naphtha | 1.01 million tons | -0.4% |
| Bitumen | 0.91 million tons | +18.8% |
| Fuel Oil | 0.57 million tons | +2.3% |
| Jet Fuel | 0.79 million tons | Data available |
Market Context and Trade Implications
India's record fuel consumption occurs against the backdrop of ongoing trade discussions regarding Russian oil purchases. The country has been taking advantage of discounts on Russian oil as Europe and the United States avoid those barrels due to Russia's invasion of Ukraine. Trump indicated potential tariff increases on India if New Delhi doesn't meet Washington's demand to curb Russian oil purchases, following previous trade negotiations where the US doubled import tariffs on Indian goods to 50%.
Industry Developments
Reliance Industries announced it is not expecting any Russian crude oil deliveries in January, signaling potential shifts in India's oil procurement strategy. Bitumen consumption, used primarily in road construction, showed particularly strong growth at 18.8% annually, reaching 0.91 million tons and indicating robust infrastructure development activity.
The record-breaking fuel consumption data reflects India's continued economic growth and energy demand expansion, positioning the country as a critical player in global petroleum markets while navigating complex geopolitical considerations regarding oil sourcing strategies.
18
Access 50+ Readymade Screeners 
Use 200+ Custom Filters 
Get Full Market Insights 
