Diesel Demand Growth Falls to Lowest Since Covid

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.

- Press Trust of India

NEW DELHI:

Diesel consumption rose 2% 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% in the previous fiscal and 12.1% in 2022-23.

Diesel accounts for about 40% 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.