Now Reading: Fuel austerity cuts India’s 2026 fuel demand growth forecast 39%
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Fuel austerity cuts India’s 2026 fuel demand growth forecast 39%
Millennium Post reports that India’s petrol and diesel prices have been raised by about Rs 5 per litre in three instalments since May 15, as oil companies passed on some of the…
The Story in Brief
Millennium Post reports that India’s petrol and diesel prices have been raised by about Rs 5 per litre in three instalments since May 15, as oil companies passed on some of the soaring international prices. Prime Minister Modi urged citizens and departments to conserve fuel, encourage remote working, and reduce non-essential travel to protect foreign exchange reserves. The price hikes and conservation push are expected to slow fuel demand growth sharply in the second half of 2026.
Energy analyst Kpler has cut India’s 2026 refined products demand growth forecast by about 77,000 barrels per day, or 39 per cent, to around 78 kbd. Petrol demand faces the steepest downside, with growth now expected at 38 kbd versus 63 kbd earlier. Diesel growth was cut by 20 kbd, and jet fuel demand growth was nearly halved to 6 kbd. The rupee has weakened 6 per cent since the US-Iran conflict escalation, and state-run retailers were losing roughly Rs 1,000 crore daily before the price revision.
The Indian Opinion
The common narrative pits government conservation as either a necessary evil or a burden on voters. Missing from both is the hard arithmetic: even after the Rs 5 hike, petrol at Rs 103 per litre is still Rs 22 below breakeven, and diesel at Rs 94 needs at least Rs 115. State OMCs were bleeding Rs 1,000 crore a day before this revision. Discounted Russian crude helps, but not enough. Watch for the next price move, will the government allow full cost recovery or continue to cap increases at the expense of OMC finances?
Source: millenniumpost.in
This story was synthesised by AI from the source linked above.
