Petrol consumption decline to a 12-month low, diesel sales at a 5-month low: Report

Petrol and diesel consumption in India witnessed a sharp decline in February 2025. With this, petrol consumption in the country marked a decline to a 12-month low, while diesel sales registered a five-month low. This decline in petrol and diesel came at a time when the automobile sector has been gradually shifting its focus on alternative fuel sources such as electricity and compressed natural gas (CNG).

A report by SBI Securities has revealed that petrol consumption in India dropped to a 12-month low of 3.1 million metric tonnes in February. This also recorded a 5.4 per cent decline as compared to January 2025. On a year-on-year basis, petrol consumption was still 3.5 per cent higher compared to February 2024, claimed the report. It further stated that this was the lowest petrol consumption recorded in the current financial year. The highest petrol consumption during the period was in May 2024, at 3.4 million metric tonnes.

On the other hand, diesel demand continues to be impacted due to the shift in fuel mix towards alternative fuel sources such as electricity, CNG etc, especially in the light commercial vehicle space. Diesel is mostly consumed in the transportation and industrial sectors. Diesel consumption in February this year stood at 7.3 million metric tonnes, registering a 5.1 per cent drop as compared to January 2025 and 1.2 per cent lower than the amount recorded in February last year.

The Petroleum Planning & Analysis Cell (PPAC) has revealed that demand for high-speed diesel (HSD) had declined to the current 7.3 million metric tonnes in February 2025, which is the lowest since September last year when diesel consumption declined to 6.3 million metric tonnes. PPAC too has attributed this decline to the increasing adoption of alternative fuels, particularly in the light commercial vehicle segment, where CNG and electric powertrains have been gradually becoming more popular owing to the lower cost of operations, high cost of diesel and tightening emission norms.

Overall, this downward trend in petrol and diesel consumption highlights a gradual transition in India's energy sector, where alternative energy sources have been gaining traction.

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