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Home / Business and Economy / India's Fuel Demand Surges Amidst Economic Activity

India's Fuel Demand Surges Amidst Economic Activity

4 Jan

•

Summary

  • India's diesel consumption saw a slight monthly dip but annual growth.
  • Petrol usage climbed due to rising personal vehicle demand.
  • Jet fuel consumption hit record highs in the previous year.
India's Fuel Demand Surges Amidst Economic Activity

India's consumption of key transport fuels, including diesel, petrol, and jet fuel, remained strong in December 2025, following record levels seen in November. Diesel usage experienced a marginal monthly decrease but grew by 5% year-on-year, reaching approximately 8.46 million tonnes. This sustained demand is attributed to robust industrial, mining, and agricultural activities, further boosted by seasonal factors like the wedding season and increased travel.

Petrol consumption rose by 0.7% month-on-month and 6.7% year-on-year, totaling 3.54 million tonnes. This growth is fueled by increasing sales of personal vehicles, especially in rural and semi-urban areas. Aviation turbine fuel (ATF) also demonstrated exceptional performance throughout 2025, surpassing previous benchmarks, despite sector-specific challenges like flight disruptions. December 2025 saw a slight 0.8% dip in jet fuel consumption, but annual usage remained flat.

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Looking ahead, analysts express significant optimism for continued growth in transport fuel demand. Factors such as an expanding industrial base, increasing affluence, and government economic measures are expected to sustain consumption. Projections indicate substantial refinery capacity additions by 2030, supporting an anticipated 4.5-5% refined product demand growth driven by strong economic expansion.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.
Diesel consumption remained high due to strong industrial, farm, and mining activity, alongside seasonal travel and wedding demand.
Petrol usage is increasing due to rising sales of personal vehicles, supported by growing affluence in rural and semi-urban areas.
Yes, jet fuel consumption surpassed previous records in 2025, despite challenges like flight disruptions.

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