India’s consumption of refined petroleum fuels and products is expected to hit another fresh high in the upcoming financial year — 2026-27 (FY27) — on the back of steady growth in energy use across various sectors of the economy, as per latest government estimates. According to projections by the Petroleum Planning & Analysis Cell (PPAC) of the Ministry of Petroleum and Natural Gas (MoPNG), the country’s consumption of petroleum products — seen a proxy for crude oil demand — in FY27 is seen rising 2.8% over the revised estimate for FY26 to 250.8 million tonnes.
The consumption growth is expected to be led by fuels and products like petrol, aviation turbine fuel (ATF), liquefied petroleum gas (LPG), diesel, and naphtha. India’s petroleum consumption has been rising to reach a new high with each passing year, with the exception of two years when demand was hit because of the COVID pandemic. The revised estimate for the current fiscal — 244 million tonnes — is slated to be the highest-ever petroleum product consumption level so far, but will likely be topped in the next financial year.