India’s June Fuel Demand Declines as LPG, Transport Fuel Consumption Weakens

India’s fuel consumption declined in June, reflecting weaker demand for key petroleum products across the country, according to data released by the Petroleum Planning and Analysis Cell (PPAC) under the oil ministry.

Total fuel demand fell 3.7% from May to 19.42 million metric tons and was also 3.1% lower than in June last year, indicating softer overall energy consumption.

Liquefied petroleum gas (LPG) recorded the sharpest decline, dropping more than 14% year-on-year to 2.19 million metric tons, despite India increasing imports from the United States to offset supply disruptions linked to tensions in the Middle East.

Gasoline sales fell 3.2% from the previous month but remained 7.4% higher than a year earlier, while diesel consumption edged down 1.4% month-on-month despite posting a 6.2% annual increase.

Demand for naphtha dropped 42% from a year ago, fuel oil consumption fell about 20% from May, and bitumen usage rose 14.7% month-on-month but remained around 18% below last year’s level.

The latest figures come as India adjusts to shifting global energy market conditions, including changes in fuel trade flows and recent revisions to export windfall taxes, which took effect on July 1.