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Diesel demand growth falls to lowest since pandemic in FY25

Kolkata 15 April 2025

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Millennium Post Kolkata

'Diesel consumption rose 2 per cent to 91.4 million tonnes in 2024-25 (April 2024 to March 2025) fiscal'

- OUR CORRESPONDENT

NEW DELHI: Growth in demand for diesel, India's most consumed petroleum product, fell to its lowest since the pandemic in the financial year ended March 31 as the economy expands at a slower pace and consumption shifts to cleaner fuels.

Diesel consumption rose 2 per cent to 91.4 million tonnes in 2024-25 (April 2024 to March 2025) fiscal, according to provisional data released by the Petroleum Planning and Analysis Cell (PPAC) of the Oil Ministry.

The growth in demand for diesel, which is used to power trucks and farm machinery, in 2024-25 was slower than 4.3 per cent in the previous fiscal and 12.1 per cent in 2022-23.

Diesel accounts for about 40 per cent of oil used in India. Softness in demand growth mirrors economic activity in the country.

But more than the economy, it is Electric Vehicles (EVs) which are starting to reshape diesel demand in India.

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