Petroleum Price Graph, Oil Pump Nozzle and Stock Market Table | Photo credit: Bluebay2014
The growth of diesel demand, the most consumed oil product in India, fell to its lowest from the pandemic in the financial year that ended on March 31 as the economy expands at a slower pace and consumption changes to cleaner fuels.
Diesel consumption increased by 2 percent to 91.4 TM in 2024-25 (April 2024 to March 2025) prosecutor, choice to provisional data released by the oil planning and analysis cell (PPAC) or the Ministry of Oil.
Diesel demand growth, which is used to feed trucks and agricultural machinery, in 2024-25 slower than 4.3 percent in the previous fiscal year and 12.1 percent in 2022-23 was.
Diesel represents approximately 40 percent or oil used in India. Softness in demand growth reflects economic activity in the country.
But more than the economy, they are the EVs that begin to remodel diesel demand in India.
Demand in the middle of the EV change
Industry officials said Diesel still works in three quarters in the transport sector of India, but growth is moderator due to the change of EV. The slower increase in consumption compared to gasoline was largely due to commercial change EV.
Electric buses are adopted rapidly in cities such as Delhi and Mumbai, and electric rickshaws (e-rckshaws) have become dominant in many cities of level 2 and level 3, directly reducing the use of diesel in urban public transport.
In addition, such as Amazon, Flipkart and Bigbasket are changing their delivery fleets to EV. This change mainly affects the vans and Diesel LCV (light commercial vehicles), reducing demand in the logistics sector.
Gasoline, fuel consumption for airplanes
Gasoline consumption increased 7.5 percent to 40 mt, while LPG demand increased 5.6 percent to 31.32 TM.
By reflecting the boom in the aviation sector, aircraft fuel consumption increased almost 9 percent to approximately 9 mt by 2024-25.
NAFTA demand, which is used as fuel in industries, fell 4.8 percent to 13.15 TM, while fuel consumption decreased almost a percentage to 6.45 mt.
The bitumen, used in road construction, the consumption of whether it fell 5.4 percent to 8.33 TM. The demand for coca -oil of oil increased by 8.6 percent and also that of lubricants and fats whose rose 12.3 percent.
In general, oil production consumption in India increased 21 percent to 239,171 TM. This growth was slower than the 5 percent increase in 2023-24, 10.6 percent in the previous year and 3.8 percent in 2021-22.
Growth of oil consumption in 2024-25, the slowest was in a decade if the married years COVID of 2019-20 and 2020-21 are excluded. Duration 2019-20 and 2020-21, the oil demand fell since the country was under the closing of most parties to avoid the propagation of the pandemic.
For the current prosecutor who began as of April 1, PPAC has projected a 5.7 percent growth in oil demand to almost 253 TM. Diesel consumption is expected to increase by 3 percent to 94.1 TM and gasoline by 6.5 percent to 42.63 mt.
Posted on April 14, 2025