India’s fuel demand rose by 3.2% in January compared to the same month last year, according to government data released on Friday. However, consumption was slightly lower than in December 2024, which saw a seasonal spike due to holiday travel and the end of the monsoon season.
India’s total fuel consumption in January 2025 reached 20.49 million metric tons, up from 20.13 million tons in January 2024. However, it dropped slightly from December 2024’s 20.73 million tons.
Diesel, the most widely used fuel in India, saw a year-on-year increase of 4.2% in January, but its demand fell by almost 4% compared to December. Gasoline demand grew by 6.7% year-on-year but decreased by 0.3% from the previous month, the data from India’s Petroleum Ministry revealed.
December’s fuel demand surge was driven by holiday travel, with gasoline consumption climbing by 9.8% to 2.99 million tons and diesel demand rising by 4.9% to 7.07 million tons.
This seasonal increase followed a period of slower consumption during the monsoon, which typically sees reduced travel and less agricultural activity, both of which lower diesel demand.
India’s oil demand growth is outpacing that of China. The U.S. Energy Information Agency (EIA) reported in December that India is expected to account for 25% of global oil demand growth this year.
In 2025, India’s oil demand is projected to increase by 330,000 barrels per day (bpd), surpassing China’s 250,000 bpd growth. While China’s growth is expected to rebound in 2025, it will still lag behind India’s, according to the EIA.
India’s position as the world’s leading driver of oil demand growth is now clearer than ever. What may be surprising is how quickly this shift has occurred, happening sooner than many had expected a year or two ago.
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