Auto Fuel Consumption Rises in October Driven by Festive Demand and GST Cuts

Auto Fuel Consumption Rises in October Driven by Festive Demand and GST Cuts

Issue: To report on the consumption trends of key auto fuels—petrol, diesel, and aviation turbine fuel (ATF)—in October 2025 and identify the key drivers of the increased demand.

Facts:

• Consumption of auto fuels had fallen for three consecutive months (June to August 2025) due to monsoon rains impacting mobility.
• The GST rate rationalization was implemented in late September 2025, aimed at boosting spending during the festive season.
• October 2025 saw the start of the peak festival season (including Navratri).

Decision:

Consumption of all key auto fuels—petrol, diesel, and jet fuel—saw a substantial rise in October 2025, reaching multi-month highs, driven by festival season demand and the stimulus from GST rate cuts.

Key TakeDowns:

• Diesel Consumption: Diesel consumption rose by 12% month-on-month (m-o-m) to 7.6 million tonnes (mt), reaching a four-month high. This surge was driven by increased stocking ahead of the festive and marriage season, the resumption of mining activity (which typically resumes in October), and rising demand from the Rabi farm sector.
• Petrol Consumption: Petrol usage rose by over 7% month-on-month and 7% year-on-year (y-o-y) to 3.45 mt, reaching a five-month high. The rise is attributed to the expanding base of personal vehicles, which got a further boost from GST rate rationalization.
• Jet Fuel (ATF) Consumption: Consumption of Aviation Turbine Fuel (ATF) was up by 7% m-o-m and over 1.5% y-o-y. This reflects the personal mobility and aspirational air travel segments, driven by an expanding middle class. * Long-Term Forecast: The International Energy Agency (IEA) projects that India’s increase in oil demand growth (1 million barrels per day over 2024-2030) will be the largest for any single country, led by petrol and jet fuel.