India Lowers 2026 Fuel Demand Growth Forecast by 40 Percent
Kpler revised India's refined-products demand growth to 77,000 barrels per day for the current year. The reduction follows higher crude import costs, a weaker rupee, and government conservation steps. State retailers have raised pump prices by more than 7.5 rupees per litre.
oneindia.comKpler lowered its forecast for India's refined petroleum demand growth to 77,000 barrels per day in 2026, down nearly 40 percent from its prior estimate of 128,000 barrels per day. The revision reflects higher crude import costs, a weaker rupee, and government-led austerity and conservation measures that have slowed transportation and aviation fuel use.
5 rupees per litre for both petrol and diesel.
New Delhi has raised fuel prices four times in recent weeks and introduced measures aimed at limiting consumption. The government is also accelerating efforts to reduce import dependence by diversifying crude suppliers, opening new offshore exploration zones, and targeting 100 billion dollars in domestic oil and gas investment by 2030.
Key Facts
Story Timeline
2 events- May 25, 2026
Kpler cut India's 2026 refined-products demand growth forecast to 77,000 barrels per day.
1 sourceOilPrice.com - May 2026
State retailers raised pump prices by more than 7.5 rupees per litre for petrol and diesel.
1 sourceOilPrice.com
Potential Impact
- 01
Lower fuel demand growth may reduce India's crude import volumes for the remainder of 2026.
- 02
Higher pump prices could shift consumer spending away from transportation fuels.
Transparency Panel
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