Fuel Consumption Surges: India's Renewed Thirst for Petrol and Diesel

In December 2024, petrol and diesel consumption in India rose significantly due to increased holiday travel. This surge reversed the decline seen in prior months, particularly lifting diesel, which had lagged. Petrol sales climbed 9.8% year-on-year, while diesel saw a 4.9% increase, driven by demand in transport and agriculture.

India witnessed a significant surge in petrol and diesel consumption in December 2024, reversing a previous downward trend as holiday travel drove increased demand. According to preliminary data from state-owned fuel retailers, petrol sales rose 9.8% to 2.99 million tonnes, while diesel consumption increased by 4.9% to 7.07 million tonnes.

The uptick in fuel sales marks the second consecutive month of growth, with petrol and diesel witnessing gains in November as well. This increase was largely attributed to road trips, air and rail travel during the festive season, alongside agricultural demand for kharif crop sowing.

Despite a monthly decline compared to November 2024, when petrol consumption reached 3.1 million tonnes, December's year-on-year growth highlights robust recovery in the sector. Diesel remains a critical fuel, constituting 40% of India's petroleum product consumption, predominantly utilized in transport and agriculture.

(With inputs from agencies.)