Petrol consumption decreased for the first time in 12 months, diesel demand also decreased
Petro-Diesel: The demand for CNG, electric, and hybrid vehicles is increasing in the country. Due to this, there is a decline in the demand for petrol and diesel. Petrol-diesel consumption has decreased for the first time in 12 months.
There was a huge drop in petrol and diesel usage in India in the year 2025. The usage of petrol and diesel in India has dropped to its lowest in 12 months for the first time. The report drafted by SBI Securities stated that the petrol consumption in India in February was at a 12-month low of 3.1 million metric tonnes. This decline in petrol and diesel has come at a time when the automobile sector is gradually shifting its focus towards other fuel sources such as electric vehicles and CNG.
It appears to have registered a decline of 5.4 percent compared to January 2025. The report, however, claims that on a year-on-year basis, petrol consumption is still 3.5 percent higher than that of February 2024. The report further claims that this is the lowest petrol consumption in the current financial year. The report states the highest consumption of petrol in this financial year was 3.4 million metric tonnes in May 2024.
On the other hand, diesel demand is being affected due to the shift towards alternative vehicles like hybrid, CNG, etc., especially in the light commercial vehicle sector. Diesel is mostly consumed in the transport and industrial sectors. Diesel consumption in February this year stood at 7.3 million metric tonnes, down 5.1 percent compared to January 2025 and 1.2 percent from the volume recorded in February last year.
Petroleum Planning and Analysis Cell (PPAC) has said that demand for high-speed diesel (HSD) has fallen to the current 7.3 million metric tonnes in February 2025, the lowest since September last year, when diesel consumption fell to 6.3 million metric tonnes. PPAC has also attributed the higher consumption of alternative fuels, especially in the light commercial vehicle segment, where CNG and electric powertrains are gradually making inroads due to lower operating costs, higher diesel prices, and tighter emission norms.
This fall in the consumption of petrol and diesel overall indicates a slow change in India's energy landscape in which alternative sources of energy are gaining popularity.
