The highest consumed petroleum product diesel demand in India was the lowest after the epidemic in the financial year ended March 31. This happened due to the slow growing of the economy and the trend towards clean fuel. According to temporary data from the Petroleum Scheme and Analysis Cell (PPAC) under the Ministry of Petroleum, diesel consumption in FY 2024-25 increased by two percent to 9.14 million tonnes. The demand for diesel used in trucks and agricultural machinery increased by 4.3 percent in FY 2023-24 and 12.1 percent in 2022-23. Diesel accounts for about 40 percent of the fuel used in India. The softening of demand growth reflects the lethargy of economic activities in the country. Apart from this, the major reasons are electric vehicles (EV), which are affecting the demand for diesel in India.
E-rickshaw trend increased in metros- cities
Industry officials said that diesel still operates three-fourths of the Indian transport sector, but the increase is slowing down due to EV change. Slow growth in diesel consumption compared to petrol was mainly due to commercial EV change. Electric buses are being rapidly adopted in cities like Delhi and Mumbai, and electric autorickshaws (e-rickshaws) have been dominated in many second and third-class cities. Because of this, the use of diesel in urban public transport is directly decreasing.
E-commerce companies emphasize EVS
Also, companies like Amazon, Flipkart and Bigbasket are converting their supply fleet into EV. Petrol consumption increased by 7.5 percent to four crore tonnes during the period under review, while LPG demand increased by 5.6 percent to 3.13 million tonnes. Similarly, in FY 2024-25, the demand for aircraft fuel (ATF) increased by nine percent to about 90 lakh tonnes.
(With agency input)
First Published – April 14, 2025 | 9:30 PM IST
