In November 2025, India's diesel consumption reached its second-highest level ever due to GST rate reductions, pent-up demand, the festival and marriage season, and new orders that increased freight and logistics activities.
India's diesel consumption reached a six-month high of 8.55 million tonnes (mt) provisionally, up 12.20 percent month over month (m-o-m) and 4.70 percent year over year (y-o-y), according to the Petroleum Planning and Analysis Cell (PPAC).
After the nation consumed over 8.59 mt of diesel in May 2025, this is the second-highest fuel usage, accounting for over 40% of the nation's consumption of refined petroleum products.

Logistics activity is fueled by seasonal patterns, such as the October–December festival and marriage season, which results in increased diesel usage. Additionally, there is an increase in mining and industrial activities during this time, which increases the use of the vital transportation fuel.
The beginning of the Rabi season, when farmers prepare their fields to plant agricultural commodities like wheat and mustard, is another factor driving higher demand for diesel.
According to industry sources, the government's rationalization of the GST rate with the goal of increasing spending during the October–December festival increased stocking, which was reflected in the increased use of diesel.

Last month, the amount of gasoline consumed was 3.50 mt, a decrease of 4.40 percent month over month. On the other hand, motor spirit (MS) use increased by 2.2% annually. The growing number of personal vehicles, which were further encouraged by the GST rationalization process, is consistent with the increase in gasoline consumption.
Due to increased domestic and international air travel, India's aviation turbine fuel (ATF) consumption increased by 1.3% month over month and 4.7% year over year.
The two main commodities in the transport fuel market, petrol and jet fuel, are seeing an increase in demand due to the growing middle class and rising wealth.

An increasing economy and commercial base contribute to the demand for the two fuels, which indicates changing dynamics in the personal mobility and aspirational air travel categories.
In a June 2025 report, the International Energy Agency (IEA) predicted that India's projected 1 million barrels per day (mb/d) increase in oil demand between 2024–2030 would be the biggest for any single nation, with petrol and jet fuel leading the way.
According to the IEA, jet and kerosene will increase at the quickest rate—nearly 6% a year.

Starting from a low foundation, the petroleum industry stands to gain the most from a 5% increase in population between 2025 and 2030 as well as from its quickly growing middle class, which is eager to spend money on upscale products and services, including international travel, it noted.
It pointed out that a similar dynamic drives a 4% yearly growth in gasoline demand, which has substantial room to grow given the low rates of car ownership.