Oil worth graph, oil pump nozzle and inventory market chart
| Photograph Credit score:
bluebay2014
Progress in demand for diesel, India’s most consumed petroleum product, fell to its lowest because the pandemic within the monetary 12 months ended March 31 because the financial system expands at a slower tempo and consumption shifts to cleaner fuels.
Diesel consumption rose 2 per cent to 91.4 MT in 2024-25 (April 2024 to March 2025) fiscal, in line with provisional knowledge launched by the Petroleum Planning and Evaluation Cell (PPAC) of the Oil Ministry.
The expansion in demand for diesel, which is used to energy vehicles and farm equipment, in 2024-25 was slower than 4.3 per cent within the earlier fiscal and 12.1 per cent in 2022-23.
Diesel accounts for about 40 per cent of oil utilized in India. Softness in demand progress mirrors financial exercise within the nation.
However greater than the financial system, it’s EVs that are beginning to reshape diesel demand in India.
Demand amid EV shift
Business officers mentioned diesel nonetheless powers three-fourth of India’s transport sector however the progress is moderating because of the EV shift. The slower consumption rise in comparison with petrol was largely because of the business EV shift.
Electrical buses are being quickly adopted in cities like Delhi and Mumbai, and electrical auto-rickshaws (e-rickshaws) have change into dominant in lots of tier-2 and tier-3 cities, instantly slicing diesel use in city public transport.
Additionally, corporations like Amazon, Flipkart, and BigBasket are switching their supply fleets to EVs. This shift primarily impacts diesel-driven vans and LCVs (Mild Industrial Autos), lowering demand within the logistics sector.
Petrol, jet gasoline consumption
Petrol consumption rose 7.5 per cent to 40 MT whereas LPG demand was up 5.6 per cent to 31.32 MT.
Reflecting growth within the aviation sector, jet fuel consumption was up almost 9 per cent at about 9 MT in 2024-25.
Demand for naphtha, which is used as a gasoline in industries, fell 4.8 per cent to 13.15 MT whereas gasoline oil consumption was down almost a per cent at 6.45 MT.
Bitumen, utilized in highway development, noticed consumption fall 5.4 per cent at 8.33 MT . Petroleum coke demand was up 8.6 per cent and so was that of lubricants and greases whose use rose 12.3 per cent.
General, petroleum manufacturing consumption in India was up 21 per cent at 239.171 MT. This progress was slower than the 5 per cent rise in 2023-24, 10.6 per cent within the previous 12 months and three.8 per cent in 2021-22.
Oil consumption progress in 2024-25 was the slowest in a decade if the 2 Covid-marred years of 2019-20 and 2020-21 are excluded. Throughout 2019-20 and 2020-21, oil demand fell because the nation was beneath lockdown in most components to forestall the unfold of the pandemic.
For the present fiscal which began from April 1, PPAC has projected a 5.7 per cent progress in oil demand to almost 253 MT. Diesel consumption is projected to rise by 3 per cent to 94.1 MT and petrol by 6.5 per cent to 42.63 MT .
Revealed on April 14, 2025
