The trend of growth in Tamil Nadu’s consumption of diesel and petrol is well below the real GSDP [Gross State Domestic Product] growth rate of around 7% per annum in the last 10 years, according to the State government’s White Paper released on Tuesday (June 16, 2026). 

Click here to read the full document of the White Paper released on June 16, 2026

Diesel consumption, which stood at 750 crore litres during 2016-17, collapsed to 564 crore litres in 2020-21 [the COVID-19 pandemic year] only to return gradually to 770 crore litres during 2025-26. The bottomline is that “the growth is essentially flat in absolute terms.”

As for petrol, the consumption grew steadily, from 312 crore litres in 2016-17 to 532 crore litres in 2025-26 — a Compound Annual Growth Rate (CAGR) of approximately 6%.

Describing the drivers of the “volume stagnation” as structural, the document attributed the development to improving fuel efficiency, the growing adoption of Compressed Natural Gas (CNG) and electric vehicles, and the shift of freight traffic patterns. “With the ongoing energy transition, the trajectory of this revenue head is likely to deteriorate further,” the official document anticipated.