Economy

Festive season drives petrol sales but diesel lag

India’s petrol sales surged to a five-month high in October on festive travel boost, but diesel consumption remained flattish, defying the trend, according to preliminary industry data.

Petrol consumption rose 7 per cent year-on-year to 3.65 million tonnes in October, as the onset of festival season increased demand for the fuel. The sales were higher month-on-month as well when compared to 3.4 million tonnes in September.

Diesel – the most consumed fuel in the country, accounting for almost 40 per cent of the fuel consumption basket – posted a marginal drop in sales at 7.6 million tonnes in October compared to 7.64 million tonnes in the same month of the previous year.

Historically, diesel consumption dipped with the advent of the rainy season in June, as demand for fuel to run irrigation pumps dropped and vehicular movements slowed. But sales rebounded from October as rains receded and the festive season fuelled a rise in trucking.

But this year, the trend has been defied with October witnessing a marginal drop in consumption rather than a rise.

While petrol consumption was 16.3 per cent more than in October 2023, diesel sales this year were lower than the 7.63 million tonnes of demand in October 2023, according to the monthly flash report of the Petroleum Planning & Analysis Cell of the Ministry of Petroleum and Natural Gas.

Jet fuel or ATF consumption continued to rebound, rising by 1.6 per cent to 7,69,000 tonnes in October. The sales were 11.11 per cent more than in October 2023. Since 2019, ATF consumption has grown at a 1.65 per cent CAGR.

LPG sales were up 5.4 per cent at almost 3 million tonnes in October, as domestic cooking needs continued to fuel growth.

One of the primary reasons for the surge is household demand for the fuel.

India added 25 lakh new homes to the subsidised LPG supply scheme, PMUY, lifting the number of households covered to 10.58 crore from 10.33 crore.

Petrol consumption in the first seven months of the current fiscal year, which started in April 2025, has risen by 6.8 per cent to 24.84 million tonnes, while diesel sales are up 2.45 per cent at 53.3 million tonnes.

ATF consumption this fiscal is up 1 per cent to 5.2 million tonnes, and LPG demand has risen 7.2 per cent to 19.7 million tonnes.

Published on November 2, 2025

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