Fuel, Fertiliser, and Cooking Gas Consumption Rebound in Post-Pandemic Period

India's Per Capita Consumption Sees Sharp Increases Across Categories

India's per capita consumption has experienced significant growth across various categories highlighted by Prime Minister Narendra Modi in his address on May 11. The country's imports of crude oil, gold, vegetable oils, and fertilizers reached a combined $240.7 billion in FY26, accounting for 31.1% of the country's total merchandise imports.

One of the most notable increases has been in petrol consumption. Per capita petrol use rose from 22.5 litres in FY20 to 30.2 litres in FY25, representing a 34.2% increase. This growth is largely attributed to higher vehicle ownership and greater mobility.

LPG or cooking gas consumption has also risen significantly, increasing by 19.2% from 19.8 kg per person to 23.5 kg over the same period. Fertilizer consumption climbed from 42.8 kg per person to 46.5 kg, up 8.6%, underscoring the growing dependence on chemical inputs that the Prime Minister has urged farmers to reduce by half through natural farming practices.

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Diesel use, a vital component of freight and agricultural transport, rose from 62 litres per person in FY20 to 67.1 litres in FY25. Aviation turbine fuel consumption increased by 8.2% to 6.5 litres per capita, while LNG usage rose by 7.6% to 50.5 standard cubic metres per person.

In addition to increased energy consumption, outbound travel has also seen a gradual expansion. Overseas trips increased by 15%, from 2.69 crore to 3.09 crore, indicating a growth in discretionary spending abroad.

However, gold was the lone exception in per capita terms, with imports dipping marginally from 0.54 kg per capita in FY20 to 0.537 kg in FY25, a decline of 0.7%. Despite this, India's total gold import bill surged to a record $72 billion in FY26, largely due to higher prices and strong aggregate demand.

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The cumulative effect of these trends is evident in the import bill. The government's message is that reversing even a fraction of these trends could materially strengthen the country's external position.

A Moneycontrol analysis estimates that India could save nearly $45 billion by reducing crude oil, gold, and edible oil imports by 10% and halving fertilizer imports.