Sales of diesel rose 4.7% to 8.55 million tonnes in Nov, its best showing since May 2025

India's consumption of diesel - the most used auto fuel - soared to a six-month high in November as the festival season and GST rate cut spurred the wheels of the economy, according to preliminary industry data.

Sales of diesel - the most consumed fuel in the country, accounting for almost 40 per cent of the fuel consumption basket - rose 4.7 per cent to 8.55 million tonnes in November, its best showing since May 2025, data from the Oil Ministry's Petroleum Planning and Analysis Cell (PPAC) showed.

The fuel, which is the backbone of goods transportation, had seen demand drop month-on-month for three straight months before showing a slight pick-up as monsoon rains receded in September. With the festive season kicking in and an across-the-board reduction in rates of goods and services tax (GST) boosting consumption led to the demand revival in October when 6.79 million tonnes of diesel sales were clocked.

The trend has continued into November.

Diesel consumption dipped with the advent of the rainy season in June, as demand for fuel to run irrigation pumps dropped and vehicular movements slowed. But sales rebounded from October as rains receded and the festive season fuelled a rise in trucking.

Compared to 7.52 million tonnes diesel consumption in November 2023, the demand for India's most used fuel was up 13.61 per cent.