India's fuel consumption dips 2.8% in August despite petrol, diesel gains

India's total fuel consumption fell 2.8% year-on-year in August to 18.61 million metric tons, official data revealed, signalling a broader slowdown in energy demand despite growth in petrol and diesel sales. The Petroleum Planning and Analysis Cell (PPAC) under the oil ministry released the figures, which serve as a key indicator of underlying economic activity in the country. The contraction points to softening demand across multiple fuel segments, even as transport fuels—which comprise a significant portion of consumption—posted positive growth. The divergence between rising petrol and diesel sales and the overall decline suggests weakness in industrial fuels and other petroleum products. Fuel consumption trends are closely monitored as a real-time gauge of economic momentum, given their direct correlation with transportation, manufacturing, and commercial activity. The August decline follows months of volatility in India's fuel demand, reflecting the uneven trajectory of the economy.