India's petrol demand rises 7% in October; diesel sales remain flat

India's fuel consumption trends diverged in October, with petrol sales rising on festive demand and diesel demand subdued by the growing use of EVs and CNG vehicles in public transport

India’s petrol consumption witnessed a robust 7.03 per cent year-on-year (Y-o-Y) growth in October, driven by festive demand, according to preliminary oil ministry data. Domestic petrol consumption stood at 3.65 million tonnes in October, compared with 3.41 million tonnes a year ago.

 

Why did petrol sales rise sharply during the festive month?

 

The rise in petrol sales reflects increased private mobility and travel during the festive season, when vehicle usage typically spikes. Two-wheeler and passenger vehicle sales also rose in October, supporting the increase in fuel consumption.

 

Why are diesel sales showing weak growth?

 

The country’s most consumed fuel, diesel, saw a 0.48 per cent Y-o-Y dip in sales in October to 7.6 million tonnes, according to data from the Petroleum Planning and Analysis Cell (PPAC). Diesel demand, mainly driven by trucks, commercially run passenger vehicles and farm machinery, has been subdued due to increased adoption of electric vehicles and compressed natural gas (CNG) in public transport. 

 

How did other fuels perform in October?

 

After weak demand over recent months, jet fuel or aviation turbine fuel (ATF) sales rose 1.57 per cent Y-o-Y in October, driven by festive-season travel. ATF consumption was 7.69 million tonnes, up from 7.57 million tonnes a year earlier.

 

In October, liquefied petroleum gas (LPG) or cooking gas demand increased 5.42 per cent Y-o-Y, supported by strong household demand. LPG consumption reached 2.94 million tonnes, compared with 2.82 million tonnes in the same month last year.

 

What is the overall trend in fuel demand for FY26 so far?

 

Petrol and cooking gas demand has remained strong in the current fiscal year. In the first seven months of 2025-26, petrol consumption grew 6.79 per cent from the year before, while cooking gas sales rose 7.18 per cent Y-o-Y during the same period.

 

Diesel and ATF demand increased by 2.45 per cent and 1.03 per cent, respectively, in the April–October period compared with last year, reflecting stable industrial and transport activity despite a gradual shift toward cleaner alternatives.