India’s June Fuel Consumption Falls 3.7% Sequentially Amid Lower LPG And Naphtha Demand

India’s total fuel consumption declined 3.7% in June from the previous month, reflecting lower demand across several petroleum products, according to data released by the Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas. Total domestic consumption stood at 19.42 million metric tonnes in June, down from 20.18 million metric tonnes in May. On an annual basis, overall fuel demand was 3.1% lower than the 20.04 million metric tonnes recorded in June last year.

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Petrol And Diesel Consumption Show Mixed Trend

Official PPAC data showed that petrol consumption rose 7.4% year-on-year to 3.78 million metric tonnes in June. However, demand eased 3.2% compared with May, when consumption stood at 3.91 million metric tonnes.

Diesel remained the country’s most-consumed petroleum product, with demand reaching 8.60 million metric tonnes during the month. Diesel consumption increased 6.2% from June 2025 but slipped 1.4% from 8.73 million metric tonnes recorded in May. The movement in crude price continued to remain one of the key factors influencing the domestic fuel market, although retail fuel demand is also shaped by economic activity and seasonal consumption patterns.

LPG, Naphtha And Fuel Oil Register Declines

LPG consumption dropped sharply to 2.19 million metric tonnes in June, down more than 14% from a year earlier, although it was marginally higher than May’s 2.13 million metric tonnes. Last month, industry sources indicated that India’s LPG imports from the U.S. were expected to cross 1 million tonnes in June, the highest on record, as buyers diversified supplies amid disruptions in the Middle East.

Naphtha consumption fell to 0.56 million metric tonnes, declining 42% from the corresponding month last year and falling from 0.67 million metric tonnes in May. Fuel oil usage also weakened, declining about 20% sequentially to 0.50 million metric tonnes.

Bitumen consumption, primarily linked to road construction activity, rose to 0.57 million metric tonnes from 0.52 million metric tonnes in May. However, it remained about 18% lower than the level recorded a year earlier.

Government Revises Export Duty Structure

The crude price environment has softened in recent weeks, prompting the government to revise windfall taxes on petroleum exports. Revised export duty rates on diesel, aviation turbine fuel and petrol exports came into effect on July 1 following a government notification issued last month.

Separately, market activity also reflected changes in regional fuel trade. As per reports, traders sold petrol produced by Nayara Energy to Russia, where fuel shortages have emerged following repeated attacks on energy infrastructure.

While June recorded lower overall fuel demand compared with the previous month, the year-on-year increase in petrol and diesel consumption indicates continued strength in transport fuel usage. Going forward, domestic fuel demand is expected to remain closely linked to industrial activity, seasonal consumption trends and movements in the global crude price.