Indias Petroleum and Gas Consumption Sees Steady Growth in FY25
India’s petroleum product consumption has seen a noticeable increase of 3.5% during the period from April to January in the fiscal year 2024-25, as per recent data from the Ministry of Petroleum and Natural Gas. This growth highlights the steady demand for energy in the country, driven by both industrial and consumer sectors. Similarly, natural gas consumption has seen an even sharper uptick, rising by 10.2% during the same period, signalling the continued shift towards cleaner energy sources.
The increase in petroleum consumption reflects the recovering energy demand in India, spurred by a rebound in industrial activity and an expanding transportation sector. With the country’s economic activities accelerating, the demand for fuels such as diesel, petrol, and jet fuel has remained robust. A key driver of this growth has been the rebound of travel and logistics, which has led to higher fuel consumption in both the domestic and commercial sectors.
Natural gas use, on the other hand, has benefited from India’s push towards cleaner energy alternatives. The significant rise in natural gas consumption indicates a growing preference for this relatively cleaner and more sustainable energy source, as India looks to reduce its reliance on coal and oil in line with its environmental goals. The government’s focus on increasing the use of natural gas in industries, power generation, and transportation is helping accelerate this shift.
The uptick in both petroleum and natural gas consumption in India is consistent with the government’s broader energy strategy, which is aimed at balancing the needs of rapid economic growth with environmental sustainability. The increased use of natural gas, in particular, has been seen as an important step in reducing the carbon footprint of the country’s energy mix.
This rise in fuel consumption comes at a time when global oil prices have been volatile, and energy security remains a critical concern for the country. With India being one of the largest energy consumers globally, ensuring stable fuel supplies and diversifying energy sources will be pivotal in supporting the country’s growth while addressing the challenges posed by climate change.
The data also points to a strong outlook for India’s energy demand, as the country’s population and economy continue to grow. With an ongoing emphasis on increasing domestic production, enhancing infrastructure, and promoting renewable energy sources, India is on track to meet its ambitious energy goals while ensuring that the needs of its growing industrial base are met
