This shift primarily affects diesel-driven vans and LCVs (Light Commercial Vehicles), reducing demand in the logistics sector.
Petrol consumption rose 7.5 per cent to 40 million tonnes while LPG demand was up 5.6 per cent to 31.32 million tonnes.
Reflecting boom in the aviation sector, jet fuel consumption was up nearly 9 per cent at about 9 million tonnes in 2024-25.
Demand for naphtha, which is used as a fuel in industries, fell 4.8 per cent to 13.15 million tonnes while fuel oil consumption was down nearly a per cent at 6.45 million tonnes.
Bitumen, used in road construction, saw consumption fall 5.4 per cent at 8.33 million tonnes. Petroleum coke demand was up 8.6 per cent and so was that of lubricants and greases whose use rose 12.3 per cent.
Overall, petroleum production consumption in India was up 21 per cent at 239.171 million tonnes.
This growth was slower than the 5 per cent rise in 2023-24, 10.6 per cent in the preceding year and 3.8 per cent in 2021-22.
Oil consumption growth in 2024-25 was the slowest in a decade if the two Covid-marred years of 2019-20 and 2020-21 are excluded.
During 2019-20 and 2020-21, oil demand fell as the country was under lockdown in most parts to prevent the spread of the pandemic.
For the current fiscal which started from April 1, PPAC has projected a 5.7 per cent growth in oil demand to nearly 253 million tonnes.
Diesel consumption is projected to rise by 3 per cent to 94.1 million tonnes and petrol by 6.5 per cent to 42.63 million tonnes.