Petrol, diesel demand rises 4 per cent in April as summer fuels consumption

Diesel, India's most consumed petroleum fuel and lifeline of transport and rural agri economy, saw just 2 per cent growth in demand in fiscal year ended March 31, 2024 and no growth at all in the preceding financial year

New Delhi: India’s diesel consumption rebounded in April, recording a 4 per cent increase in demand after months of low or negative growth, driven by the start of summer season with warmer days and nights.

Diesel, India’s most consumed petroleum fuel and lifeline of transport and rural agri economy, saw just 2 per cent growth in demand in fiscal year ended March 31, 2024 and no growth at all in the preceding financial year.

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In April, diesel consumption rose to 8.23 million tonnes, up nearly 4 per cent over demand in the year ago period, according to latest data available from the Petroleum Planning and Analysis Cell of Ministry of Petroleum and Natural Gas.

The consumption was 5.3 per cent more than April 2023 and 10.45 per cent higher than the previous Covid-2019 period. Onset of summer triggers rural demand for irrigation as well as for air-conditioning in urban areas.

The 4 per cent rise in April 2025 is the highest recorded volume for this month and second highest ever volume in any month. Industry officials said diesel had hit a slow lane in the last few months, leading to speculations about its future.

The growth in April was on the back of rise in consumption for electioneering a year back. While there has been a shift in passenger vehicles to petrol, CNG and electricity, diesel still makes up for around 38 per cent of all petroleum products consumed in the country.

It has grown at more than 10 per cent over pre-Covid volume and will continue to grow for the next many years, they said. During April 2025, petrol consumption registered a growth of 4.6 per cent to 3.435 million tonnes. Petrol consumption last year had soared by 19 per cent due to electioneering. It has added volume equal to four months since 2019.

LPG continued to be in the fast lane with 6.7 per cent growth to 2.621 million tonnes, driven by Ujjawala connections. Since 2019, volumes equal to almost 5 months have been added in domestic cooking gas consumption.

ATF consumption growth slowed to 3.25 per cent to 7,66,000 tonnes. Jet fuel was clocking a double-digit growth last year due to electioneering (last year ATF grew by 11.28 per cent in April 2024), according to PPAC.