- Production rises marginally despite supply disruptions
- Consumption declines amid higher import costs
India’s petcoke consumption fell sharply to 1.60 mnt, down 28.6% y-o-y from 2.24 mnt. However, domestic petcoke production stood at 1.19 mnt in August 2026, up 1.1% from 1.18 mnt in August 2025, according to the latest government data . During April-August 2026, production reached 5.42 mnt, down 9% from 5.95 mnt a year earlier, while consumption declined 22.8% to 6.81 mnt from 8.83 mnt. The gap between domestic production and consumption continued to be met through imports.
Production remains under pressure
Petcoke production in FY 2025-26 stood at 14.77 mnt, compared with 14.96 mnt in FY 2024-25, marking a 1.27% decline. The latest August increase remained limited as refinery production continued to depend on product-mix decisions and crude availability.
The government attributed production disruptions in recent months to the US-Iran conflict, which affected crude sourcing and shipping logistics through the Strait of Hormuz. Continued uncertainty also increased the cost and risk of international trade. However, August production still showed marginal annual growth.
Petcoke remained a by-product of refinery operations, with output linked to refinery product-mix decisions. Refineries continued to prioritise higher-value products from delayed coking units, including transportation fuels and other petroleum products, depending on refinery margins and operating conditions.
Consumption declines sharply
Petcoke consumption fell to 1.60 mnt in August, from 2.24 mnt in the same month last year. Cumulative consumption during April-August stood at 6.81 mnt, compared with 8.83 mnt during the corresponding period of FY 2025-26.
The decline was largely linked to weaker use of imported petcoke, as higher international prices reduced its cost advantage against alternative fuels. Cement producers, the major consumers of petcoke in India, continued to compare petcoke with high-CV coal based on delivered fuel economics.
Petcoke consumption also remained seasonally weaker during the monsoon. Demand was generally stronger from November to June, when infrastructure and cement activity increased, while consumption slowed during the monsoon period.
Imports continue to fill supply gap
Domestic production remained below consumption, requiring imports to meet the balance demand. In FY 2025-26, domestic petcoke production of 14.77 mnt covered around 65.4% of consumption of 19.85 mnt. In FY 2024-25, production of 14.96 mnt covered around 67.8% of consumption of around 22.0 mnt.
In August 2026, domestic production of 1.19 mnt covered around 74.4% of consumption of 1.60 mnt. During April-August 2026, production of 5.42 mnt covered around 79.5% of consumption of 6.81 mnt.
Petroleum coke imports remained subject to Directorate General of Foreign Trade rules, with specified industries such as cement, lime kilns, calcium carbide and gasification permitted to import petcoke. Cement remained the major importer, without a fixed annual quantity restriction similar to certain other industrial applications.
Cement production supports petcoke demand
India’s cement output increased 12.5% y-o-y in August, according to provisional government data, while cumulative growth during April-August 2026 stood at 10.3%. The strong cement-sector performance provided underlying support to petcoke demand, although higher petcoke prices and increased fuel costs continued to encourage producers to compare petcoke with alternative fuels.
Petcoke share in petroleum output declines
Petcoke production accounted for 4.93% of total petroleum product production in August, with 1.19 mnt produced against 24.25 mnt of total petroleum products. During April-August, petcoke production represented around 4.67% of total petroleum product output.
For FY 2025-26, petcoke production accounted for around 5.2% of total petroleum product production of 284.88 mnt, compared with 5.27% in FY 2024-25.
On the consumption side, petcoke accounted for 8.59% of total petroleum product consumption in August, with 1.60 mnt consumed against 18.61 mnt. During April-August 2026, its share stood at 7.09%, with consumption of 6.81 mnt against total petroleum product consumption of 96.16 mnt.
Overall, petcoke production showed a marginal annual recovery in August, while consumption remained substantially lower due to weaker demand and higher imported fuel costs. The market continued to rely on imports to bridge the gap between domestic output and consumption.
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