India's Diesel Consumption Falls Amid EV Surge & Urban Electrification

2025-04-15 02:25:25

(MENAFN- KNN India) New Delhi, April 15 (KNN) Diesel consumption fell to its lowest level since the COVID-19 pandemic during the fiscal year 2024-25, reflecting an increasing shift toward cleaner energy alternatives.

According to provisional data released by the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry, diesel consumption rose by just 2 percent to 91.4 million tonnes in the fiscal year 2024-25.

This modest growth represents a significant deceleration compared to previous periods, with diesel demand having increased by 4.3 percent in the 2023-24 fiscal year and 12.1 percent in 2022-23.

As India's most consumed petroleum product, accounting for approximately 40 percent of the country's oil usage, diesel consumption patterns serve as a key indicator of broader economic activity.

Industry officials attribute this slowdown not only to economic factors but also to the accelerating adoption of Electric Vehicles (EVs) across the transportation sector.

While diesel continues to power three-quarters of India's transport infrastructure, the growth trajectory is moderating as electric alternatives gain traction, particularly in commercial applications.

The EVs trend is especially pronounced in urban public transportation, with cities like Delhi and Mumbai rapidly deploying electric buses.

Additionally, electric auto-rickshaws have achieved significant market penetration in tier-2 and tier-3 cities, directly displacing diesel consumption in urban mobility services.

Major e-commerce and delivery companies, including Amazon, Flipkart, and BigBasket, are also transitioning their delivery fleets to electric vehicles, further reducing diesel demand in the logistics sector.
In contrast, petrol consumption increased by 7.5 percent to 40 million tonnes, while LPG demand rose by 5.6 percent to 31.3 million tonnes.

The aviation sector demonstrated particular growth, with jet fuel consumption climbing nearly 9 percent to approximately 9 million tonnes during the fiscal year 2024-25.

(KNN Bureau)

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