Fuel Sales Plunge: What India’s April Numbers Reveal About the Road Ahead

India's fuel market surprised with a blockbuster turn in April 2025, when local consumption reached nearly record highs as diesel exports plunged to a level not seen since more than ten years.

 

Important Points:

 

Domestic Demand Hits New Highs: India's overall fuel sales in April totalled 20.13 million metric tons, led by a hot summer and rampant activity across transport, agriculture, and industry. Diesel demand, the driver of India's rural economy and logistics sector, rose 4% year-on-year to 8.23 million tons-its second-largest monthly volume ever. Petrol demand also rose 4.6% to 3.44 million tons, supported by growing vehicle ownership and travel in the holiday and school reopening period.

 

Month-on-Month Decline Explained: Although year-on-year growth remained strong, overall fuel sales decreased by 3.7% compared to March's record level, showing the seasonally inflated figure in March caused by pre-election activity and built-up demand.

 

Exports Hit Decade Low: On the export side, India's diesel exports fell to a mere 1.15 million tons-the lowest since February 2012. Top exporter Reliance Industries reduced refinery production for maintenance, rerouting more supply to serve robust domestic demand. This steep decline in exports tightened diesel supplies in Asia and Europe, pushing regional fuel prices higher.

 

Sector Outlook: Exporters are seen to recover in May as refinery maintenance concludes, but the April data reflects India's increasing hunger for fuel and its increasing role in global oil markets.

 

Sources: Hindustan Times Auto, CNBC-TV18, The Hindu BusinessLine, Reuters