India’s diesel consumption in September 2025 rose 6.3 % year-on-year, reaching 6,768 thousand metric tonnes (TMT), as festive season travel and haulage activities spurred demand. This growth underscores the critical role of diesel in powering freight, public transport, and agricultural segments during peak demand periods.
Cumulative Diesel Demand: Moderate Growth in H1 FY26
In the April–September period (first half of FY26), diesel consumption touched 45,667 TMT, up from 44,382 TMT the previous year — a growth of 2.9 %. While this indicates sustained demand, the growth is more modest compared to petrol’s cumulative gain of 6.7 %. This suggests diesel-intensive sectors are inching forward, but not at the same pace as passenger fuel demand.
| Period | Diesel Consumption (TMT) | Year-on-Year Growth |
|---|---|---|
| September 2025 | 6,768 | +6.3 % |
| April–September FY26 | 45,667 | +2.9 % |
Factors Driving Diesel Demand in September
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Festive Travel & Logistics Surge: With festivals around September–October, movement of goods and passengers increases, raising consumption of diesel for trucks, buses and supply chains.
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Agricultural Operations: The tail end of the monsoon season stimulates farm mechanisation and transport of produce, which is largely diesel-driven.
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Freight Transport: Diesel fuels heavy vehicles — road freight bounced in demand as commercial activity revived.
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Comparative Growth Constraint: Diesel’s base volume is large, so even a 6.3 % rise adds significant absolute volume, though percentage growth lags behind petrol in some months.
Trends, Challenges & Outlook for Diesel Demand
Over the past five years, diesel demand in India has grown at a compound annual growth rate (CAGR) of 2.5 %, compared to petrol’s 6.1 %. Diesel’s slower CAGR reflects structural shifts — rising electrification in transport, stricter emissions regulations, and improvements in fuel efficiency. Still, diesel remains backbone for freight, public transport and rural operations.
Outlook & Risks: Going ahead, diesel demand may see moderate growth, supported by infrastructure projects, logistics expansion and rural recovery. However, risks include fuel substitution, carbon policy interventions, and volatility in crude prices.