Jet fuel and natural gas consumption in India are expected to grow at a rapid pace of almost 10% annually in FY26, reflecting the rising spending power in the country. According to projections from the Petroleum Planning and Analysis Cell (PPAC), India’s aviation turbine fuel (ATF) consumption is set to increase by 9.82% to 9.95 million tonnes in FY26, while natural gas usage is projected to rise by 10% to 61.37 million tonnes.
This growth can be attributed to the strong performance of the economy, steady manufacturing and agricultural activity, lower prices compared to previous years, and a focus on cleaner fuels. The Indian government’s plans to invest $11 billion in airport infrastructure, aiming to have 200 operational airports by 2025, will also contribute to the increase in jet fuel consumption.
On the natural gas front, India’s demand is on the rise due to an expanding industrial and manufacturing base. The International Energy Agency (IEA) expects India’s gas demand to grow by around 8% in 2025, up from almost 9% in 2024.
In terms of auto fuels, petrol consumption is projected to grow by 6.65% in FY26 to 42.64 million tonnes, while diesel consumption is expected to increase by 2.77% to 94.12 million tonnes. This growth is driven by steady manufacturing and farm activity, along with increasing mobility levels.
Overall, India’s refined petroleum product consumption is forecasted to grow by 4.65% in FY26 to 252.93 million tonnes. This growth underscores the country’s expanding economy and rising spending power, which are driving the increased demand for jet fuel, natural gas, petrol, and diesel in India.
