Festival season, GST cuts lift diesel and petrol demand in September

India's diesel and petrol consumption rebounded in September 2025 as festive stocking and GST rate rationalisation boosted demand, offsetting the impact of heavy rains.

According to provisional data from the Petroleum Planning & Analysis Cell (PPAC), diesel consumption rose 6.4% year-on-year (YoY) to 6.77 million tonnes, also marking a 2.9% month-on-month (MoM) increase. Petrol consumption climbed 7.5% YoY to 3.39 million tonnes, though it fell 4% compared with August due to reduced personal mobility during rains.

Industry officials said GST rate cuts ahead of the October-December festive and wedding season spurred aggressive stocking, particularly in diesel, while rising ownership of cars and two-wheelers kept petrol demand resilient.

"GST rationalisation led to advance bookings by stockists, with benefits likely passed on to consumers. This will likely support diesel volumes into October as well," a refiner said.

India's fuel demand had slowed between June and August because of monsoon disruptions, after hitting record highs in May. September rains were 15% above normal, limiting mobility but not dampening seasonal stocking.

Jet fuel consumption edged up 0.7% MoM to 716,000 tonnes but slipped 1.4% YoY as rains affected air travel. Meanwhile, cooking gas demand rose 6.5% in September.

Fuel consumption is widely seen as a proxy for economic activity. Analysts expect GST relief and festival-driven demand to keep petroleum consumption buoyant in the coming months.Read about our editorial guidelines and ethics policy