Diesel Sales Soar in Nov: Festive Demand & GST Impact

New Delhi, Dec 1 (PTI) India's consumption of diesel - the most used auto fuel - soared to a six-month high in November as the festival season and GST rate cut spurred the wheels of the economy, according to preliminary industry data.

Sales of diesel - the most consumed fuel in the country, accounting for almost 40 per cent of the fuel consumption basket - rose 4.7 per cent to 8.55 million tonnes in November, its best showing since May 2025, data from the Oil Ministry's Petroleum Planning and Analysis Cell (PPAC) showed.

The fuel, which is the backbone of goods transportation, had seen demand drop month-on-month for three straight months before showing a slight pick-up as monsoon rains receded in September. With the festive season kicking in and an across-the-board reduction in rates of goods and services tax (GST) boosting consumption led to the demand revival in October when 6.79 million tonnes of diesel sales were clocked.

The trend has continued into November.

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.

Compared to 7.52 million tonnes diesel consumption in November 2023, the demand for India's most used fuel was up 13.61 per cent. Since 2019, fuel consumption has grown at a CAGR of just over 2 per cent.

In the first eight months of the current fiscal, diesel sales were up 2.76 per cent to 61.85 million tonnes.

Petrol consumption in November was up 2.19 per cent to 3.5 million tonnes. Compared to November 2023, petrol sales were up 12 per cent and have shown a CAGR of 5.54 per cent between 2019 and 2025. In the current fiscal, petrol demand is up 6.25 per cent to 28.35 million tonnes.

Jet fuel or ATF consumption continued to rebound, rising by 4.7 per cent to 7,83,000 tonnes in November. Sales were 13.47 per cent higher than in November 2023. Since 2019, ATF consumption has grown at a 1.67 per cent CAGR.

LPG sales were up 7.62 per cent at almost 3 million tonnes in November, 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.