The gradual waning of the intensity of the conflict in West Asia coupled with the government removing restrictions on supply of liquefied petroleum gas (LPG) to commercial consumers during June end helped boost consumption of the critical cooking medium used by more than 33.50 crore households.According to the Petroleum Planning & Analysis Cell (PPAC), India’s LPG consumption rose to a six-month high during July 2026 hitting around 2.37 million tonnes (mt) on a provisional basis, rising by 8 per cent m-o-m. However, the usage was lower by almost 16 per cent on an annual basis.This is the third consecutive month to record an uptick in LPG consumption as India bulked up on cargoes from the US and more supplies came out of the Middle East Gulf (MEG) region as the conflict intensity waned with off-and-on peace talks between the US and Iran.India’s LPG consumption declined by 8 per cent y-o-y to around 14.74 mt during the first half of the 2026 calendar year as the West Asia conflict and the resultant closure of the Strait of Hormuz (SoH) completely blocked off supply of the key cooking fuel.The conflict led to the government rationing LPG supplies with 100 per cent supply to the domestic sector and 70 per cent to the commercial consumers, which was removed on June 25, 2026. Around 90 per cent of the consumption is by households, with the remaining by commercial & industrial (C&I) consumers.The consumption of transport fuels such as diesel and aviation turbine fuel (ATF) declined during July due to monsoon impacting industrial activity and mobility. Historically, usage of transport fuels declines during the rainy season.Diesel consumption fell by 6.5 per cent m-o-m to around 8.05 mt in July. However, the usage was higher by more than 9 per cent y-o-y. Diesel consumption in July 2026 was higher than the average of the last five years.India’s usage of petrol rose marginally to 3.8 mt in July 2026 compared to 3.79 mt a year-ago. On an annual basis, the consumption rose by almost 9 per cent last month.Jet fuel usage fell by roughly 4 per cent m-o-m and 1.5 per cent y-o-y to 699,000 tonnes last month. This is the lowest since December 2023.In March this year, India’s diesel consumption hit a record high at 8.73 mt. It rose by 14 per cent m-o-m and 8 per cent y-o-y. Prior to this, the highest consumption was in May 2025 at 8.57 mt.Similarly, the consumption of petrol also hit a record high of 3.78 mt, growing by 12 per cent m-o-m and almost 8 per cent y-o-y. Prior to this, the highest usage was recorded in May 2025 at 3.77 mt.Published on August 4, 2026