Business News: Diesel Demand Falls as EV Gains Momentum in India

Diesel vs EV: According to the Petroleum Planning and Analysis Cell, diesel demand in India is expected to rise by only 2% between 2024 and 2025, reaching 90.4 million tons. This modest growth rate is much lower than in prior years—12.1% in 2022-2023 and 4.3% in 2023-2024, indicating a dramatic reversal in the country’s fuel consumption tendencies. Diesel has always played an important role in India’s transportation and energy sectors, powering everything from trucks and buses to rural generators. However, recent data suggest that diesel’s dominance is declining, indicating a revolutionary shift in the country’s energy sector.

How EV is Replacing Diesel?

The proliferation of electric vehicles (EVs) is a major driver of this trend. Major cities, including Delhi and Mumbai, have begun to replace diesel buses with electric vehicles, while Tier 2 and Tier 3 cities are also seeing a steady uptake of e-buses. In the logistics industry, companies such as Omegon, Flipkart, and Big Basket are progressively moving to electric delivery fleets to decrease fuel costs and environmental effects. Additionally, public interest in EVs for personal use—both cars and two-wheelers—is constantly increasing. This transformation is taking place even though diesel still accounts for 40% of India’s overall oil consumption, raising serious concerns about the fuel’s long-term viability in light of the ongoing EV revolution.