India's Fuel Consumption Hits Four-Month High in October Driven by Festivals and Economic Activity

Energy

Updated on 02 Nov 2025, 10:53 am

Reviewed By

Aditi Singh | Whalesbook News Team

Short Description :

India's fuel consumption reached a four-month high in October 2025, boosted by the festival season and economic recovery. Sales of personal vehicles surged to their highest for the year, while aviation turbine fuel (ATF) consumption also hit a five-month peak. Diesel consumption rose 12% month-on-month to 7.6 million tonnes, and petrol consumption increased by over 7% month-on-month. This surge is attributed to government measures like GST rationalization, increased demand from the farm sector for the Rabi season, and the resumption of mining activities.

India's Fuel Consumption Hits Four-Month High in October Driven by Festivals and Economic Activity

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Detailed Coverage :

India experienced a significant surge in fuel consumption in October 2025, reaching a four-month high, largely propelled by the festive season and supportive economic conditions. Personal vehicle sales saw their highest point of the year, contributing to a more than 7% month-on-month increase in petrol consumption, which reached 3.45 million tonnes. Aviation Turbine Fuel (ATF) consumption also climbed to a five-month high, showing a 7% month-on-month rise. Diesel demand was particularly strong, growing 12% month-on-month to 7.6 million tonnes, though annual figures remained slightly lower.

This uptick in consumption is attributed to several factors. The government's rationalization of Goods and Services Tax (GST) rates aimed to stimulate spending during the October-December festival and wedding season, encouraging stocking and thus higher diesel usage. Furthermore, the agricultural sector is increasing demand as the country prepares for the Rabi season, and mining activities, which resumed in October, also contribute to higher fuel sales.

The International Energy Agency (IEA) projects India to lead global oil demand growth between 2024 and 2030, driven by an expanding middle class and increasing affluence. This trend is expected to be led by petrol and jet fuel, indicating sustained growth in personal mobility and air travel.

Impact This news indicates robust economic activity and consumer spending in India. Higher fuel consumption suggests increased industrial output, transportation, and personal mobility, which are positive indicators for the overall economy. Investors may look for companies in the energy sector, transportation, and consumer discretionary segments to benefit. It also points to potential inflationary pressures if demand outstrips supply significantly. Rating: 8/10

Difficult Terms: PPAC: Petroleum Planning and Analysis Cell, an organization under India's Ministry of Petroleum and Natural Gas that provides data and analysis on the petroleum sector. m-o-m: Month-on-month, a comparison of a metric from one month to the previous month. y-o-y: Year-on-year, a comparison of a metric from one period to the same period in the previous year. ATF: Aviation Turbine Fuel, a type of fuel used in jet aircraft. GST: Goods and Services Tax, a consumption tax implemented in India. Rabi season: A cropping season in India, typically from October to March, requiring winter sowing. IEA: International Energy Agency, an intergovernmental organization that provides energy-related data, research, and policy recommendations. mb/d: Million barrels per day, a unit used to measure oil production or consumption.