India fuel demand falls 6.3% in August as pump prices remain unchanged
India’s August fuel demand fell 6.3% year on year to 18.61 million metric tonnes, while state-run oil marketers held petrol and diesel prices steady despite Brent crude settling above $104 a barrel.
What happened
Indian state-run oil marketing companies · Rising global crude prices and Middle East supply concerns are increasing pressure on Indian state-run fuel
Key facts
- Brent crude settled at $104.61 per barrel
- WTI settled at $100.05 per barrel
- Brent reached $107.63 and WTI $102.48 on September 11
- Petrol and diesel prices unchanged since a Rs 7.5-per-litre hike on May 25
- India's August fuel demand fell 6.3% to 18.61 million metric tons
What changed
Rising global crude prices and Middle East supply concerns are increasing pressure on Indian state-run fuel retailers, though domestic petrol and diesel prices remain unchanged. India’s August fuel demand fell 6.3% to a near two-year low of 18.61 million metric tons.
Why this matters
Steady pump prices amid a 6.3% August demand decline signal pressure on fuel volumes, making forecourt traffic, convenience attachment and inventory discipline key near-term priorities.
What to watch
- Brent crude remaining above $100 per barrel for multiple weeks and the Indian rupee’s movement against the US dollar.
- Monthly Petroleum Planning & Analysis Cell data for diesel, petrol, ATF and LPG volumes, especially post-monsoon freight demand.
- Indian Oil, Bharat Petroleum and Hindustan Petroleum marketing-margin commentary, inventory losses and any indication of under-recoveries.
- Government statements on excise duty, state VAT, OMC compensation or retail fuel-price policy.
- Festival-season vehicle traffic, e-commerce delivery volumes and freight-rate changes.