India's fuel consumption saw a noticeable decline in February 2025, primarily driven by a growing shift towards alternative fuel sources like electric vehicles (EVs) and compressed natural gas (CNG), according to a report by SBI Securities.
The report revealed that petrol consumption in India fell to a 12-month low of 3.1 million metric tonnes (MMT) in February, marking a 5.4% decline compared to the previous month. However, when compared to February 2024, petrol consumption was still 3.5% higher on a year-on-year (YoY) basis. Despite the monthly decline, this was the lowest petrol consumption recorded in the current financial year. In contrast, May 2024 had witnessed the highest petrol consumption at 3.4 MMT.
The shift in fuel consumption patterns is attributed to the increasing adoption of electric vehicles and CNG, especially in the light commercial vehicle segment, which traditionally relied heavily on diesel. Diesel consumption, a key fuel for transportation and industrial activities, also saw a drop in February 2025. Diesel usage stood at 7.3 MMT, marking a 5.1% drop month-on-month (MoM) and a 1.2% decrease compared to February 2024.
The decline in diesel demand highlights a significant change in the fuel mix, with alternative energy sources like electric vehicles gaining traction across the country. The ongoing transition to EVs and CNG in the commercial sector, coupled with growing environmental awareness and government incentives, has contributed to the decrease in traditional fuel consumption.
As more consumers and businesses move towards sustainable energy solutions, the trend of reduced petrol and diesel consumption is expected to continue, signaling a shift towards greener alternatives in India’s transportation and energy sectors.
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