India's Diesel Demand Rebounds In April As Summer Season Begins

Official data showed that diesel usage climbed to 8.23 million tonnes April 2025, reflecting a 5.3 per cent increase compared to April 2023 and a 10.45 per cent jump over the pre-Covid period of 2019.

Diesel remains India’s most consumed petroleum product and plays a critical role in fuelling transportation and supporting agricultural operations in rural areas.

Source : Freepik

India’s diesel consumption saw a marked recovery in April, registering a 4 per cent rise after months of stagnation and low growth. The increase aligns with the seasonal onset of summer, which typically boosts rural and urban energy requirements, particularly for irrigation and air conditioning.

According to data released by the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum and Natural Gas, diesel usage climbed to 8.23 million tonnes during the month, reflecting a 5.3 per cent increase compared to April 2023 and a 10.45 per cent jump over the pre-Covid period of 2019, reported PTI.

Diesel remains India’s most consumed petroleum product and plays a critical role in fuelling transportation and supporting agricultural operations in rural areas. However, in the financial year that ended on March 31, 2024, demand for diesel grew by just 2 per cent. The previous year had seen no growth at all, raising concerns within the industry about the long-term trajectory of diesel usage.

Industry Sees Signs of Revival Across Fuel Segments

The April 2025 figures marked the highest diesel volume ever recorded for the month and the second highest volume achieved in any month. “It has grown at more than 10 per cent over pre-Covid volume and will continue to grow for the next many years,” industry officials said, adding that despite a growing preference for petrol, CNG, and electric vehicles in the passenger segment, diesel continues to account for approximately 38 per cent of India’s total petroleum consumption.

The increase in diesel consumption last month was also partially attributed to heightened activity during the election season a year ago. Other fuel categories posted mixed results: petrol consumption rose by 4.6 per cent to reach 3.435 million tonnes, though this was a more moderate increase compared to the 19 per cent jump seen during last year’s election-driven surge. Officials noted that petrol demand has expanded by an amount equivalent to four months of volume since 2019.

Meanwhile, domestic LPG usage maintained strong momentum with a 6.7 per cent rise to 2.621 million tonnes, spurred in large part by government-backed Ujjwala connections. Since 2019, LPG consumption has grown by the equivalent of nearly five months of additional volume. On the aviation front, jet fuel (ATF) demand grew at a slower pace, up 3.25 per cent to 766,000 tonnes. This represents a cooldown from April 2024, when ATF had surged by 11.28 per cent during the election cycle.