ICRA famous that through the first seven months of FY2026, gasoline consumption declined by 4.5 per cent year-on-year.
The home pure gasoline consumption is predicted to rebound and develop by 3-4 per cent year-on-year in FY2027 after witnessing a part of near-term moderation in FY2026, in keeping with a report by ICRA.
The report highlighted that the restoration in gasoline consumption will likely be pushed by a pickup in industrial offtake and the continued enlargement of the Metropolis Fuel Distribution (CGD) community. ICRA expects greater gasoline utilization from key consuming sectors corresponding to refining, fertilisers and CGD to assist this development in FY2027.
It acknowledged, “India’s pure gasoline consumption is predicted to develop by 3-4 per cent year-on-year in FY2027, following a interval of near-term moderation in FY2026”.
ICRA famous that through the first seven months of FY2026, gasoline consumption declined by 4.5 per cent year-on-year. This drop was primarily as a result of decrease offtake from main consuming sectors together with fertilisers, energy technology and refineries.
Whereas the CGD section has continued to file wholesome development and stays a key driver of demand, general gasoline consumption for FY2026 is predicted to stay flat or witness low single-digit moderation.
The report additionally identified that home gasoline manufacturing has remained stagnant, with any incremental output prone to be offset by the pure decline from present gasoline fields. This has contributed to the subdued consumption development within the close to time period.
Trying forward, ICRA mentioned the broader vitality atmosphere is predicted to be supportive. Crude oil costs are projected to common between $60-70 per barrel in FY2027 as a result of muted international demand development amid rising provides.
Even at these worth ranges, the profitability of home crude oil producers is predicted to stay wholesome, and their capital expenditure plans are prone to keep intact.
On the identical time, home consumption of petroleum merchandise is predicted to develop by 1-2 per cent in FY2027.
On the worldwide entrance, LNG costs have eased as a result of expectations of hotter winters in key areas and wholesome stock ranges. Moreover, vital LNG capability additions deliberate globally are anticipated to result in a moderation in LNG costs from calendar yr 2027. Home gasoline costs are additionally anticipated to melt according to decrease crude oil costs.
General, the report steered that after a yr of moderation, India’s pure gasoline consumption is ready to regain momentum in FY2027, led by industrial restoration and regular development within the CGD section.
Revealed on January 1, 2026
