New Delhi [India]: According to a research by SBI Securities, India’s fuel usage decreased in February 2025, mostly as a result of a move towards alternative fuel sources including compressed natural gas (CNG) and electric vehicles (EVs).

According to the data, India’s petrol consumption dropped 5.4% month-over-month (MoM) in February to 3.1 million metric tonnes (MMT), a 12-month low. Nonetheless, gasoline consumption was still 3.5% greater year over year (YoY) than it was in February 2024.

Interestingly, this was the least amount of gasoline used throughout the current fiscal year. May 2024 had the greatest gasoline usage throughout that time, with 3.4 MMT.

According to the research, “Diesel demand continues to be impacted due to the shift in fuel mix towards alternative fuel sources such as EV, CNG etc. especially in the light commercial vehicle segment.”

The use of diesel, which is essential for both industrial and transportation processes, decreased as well. Diesel usage was 7.3 MMT in February 2025, down 5.1% month over month and 1.2% year over year.

High-speed diesel (HSD) consumption has dropped to 7.3 MMT, the lowest level since September, when it dropped to 6.3 MMT, according to statistics from the Petroleum Planning & Analysis Cell.

The growing use of alternative fuels, especially in the light commercial vehicle market where EVs and CNG are gaining traction, was blamed by the research for this drop.

Aviation turbine fuel (ATF), which is utilized in air transport, had a six-month decrease in consumption, hitting 7.3 MMT in February 2025, according to statistics from the Petroleum Planning & Analysis Cell.

The decline in fuel usage points to a slow shift in India’s energy industry toward the use of alternative energy sources.

Rising fuel costs, growing CNG infrastructure, and government initiatives supporting EV use are all pushing companies and individuals to look into more environmentally friendly solutions.

In the next months, it will be crucial to monitor the effects on gasoline tax income for the government and how the oil industry responds to these developments.