Archive · 2 Oct 2025
September Auto Fuel Demand Boosted by GST, Festivals
In September 2025, India saw an increase in the use of diesel and petrol.
This was because of the festival season and the government cutting the Goods and Services Tax (GST).
Even though it rained a lot, which usually lowers the use of fuel, consumption increased.
The rise in consumption was also spurred by businesses stocking up fuel ahead of the festival season to capitalize on GST benefits.
Petrol usage dropped slightly month-on-month due to rains affecting personal travel, while jet fuel consumption also saw an increase.
Diesel consumption rose 6.4% year-on-year to approximately 6.77 million tonnes in September 2025.
Petrol consumption increased 7.5% year-on-year to 3.39 million tonnes in September 2025.
Jet fuel consumption rose by 0.7% month-on-month to 716,000 tonnes.
GST rate cuts boosted demand for fuels due to festival season.
Heavy monsoon rains were recorded in September 2025.
- Who
- India
- What
- Increased auto fuel consumption
- When
- September 2025
- Where
- India
- Why
- Festival season, GST rate cuts
Consumers
Government
Impact of GST Rationalisation
Consumers
Benefit from lower prices and increased spending during festival season.
Government
Boost spending through tax incentives, stimulating the economy.
- Diesel Consumption (Sept 2025)
- 6.77 million tonnes
- Diesel Consumption YoY Growth (Sept 2025)
- 6.4%
- Petrol Consumption (Sept 2025)
- 3.39 million tonnes
- Petrol Consumption YoY Growth (Sept 2025)
- 7.5%
- Jet Fuel Consumption (Sept 2025)
- 716,000 tonnes
Sources
Power consumption grows 3.2% to 145.91 BUs in Sept
Power sector sees fresh spark in August: 3 big factors fuelling demand rebound
Festival season, GST rationalisation boosts auto fuel demand in September
Festival season, GST cuts lift diesel and petrol demand in September
313.74 MU power generated at Ukai dam in Aug & Sept, 2nd highest in last 6 years
