India's Fuel Consumption Falls 3.7% In June As LPG Demand Drops: PPAC

New Delhi, Jul 7 (KNN) India's fuel consumption declined 3.7 percent month-on-month to 19.42 million metric tonnes in June, reflecting lower demand compared to May, according to data released by the Petroleum Planning and Analysis Cell (PPAC).

Fuel consumption also fell 3.1 percent compared with June last year. Total consumption stood at 20.18 million tonnes in May.

LPG Consumption Sees Sharp Decline

Liquefied petroleum gas (LPG) consumption declined more than 14 percent year-on-year to 2.19 million tonnes. 

The fall comes even as India's LPG imports from the United States are estimated to have crossed one million tonnes in June, driven by efforts to offset supply disruptions from the Middle East.

Petrol and Diesel Demand Shows Mixed Trends

Petrol consumption declined 3.2 percent from the previous month but remained 7.4 percent higher than a year earlier. Diesel demand fell 1.4 percent on a monthly basis, although it increased 6.2 percent year-on-year.

Among other petroleum products, naphtha consumption dropped 42 percent compared to June last year, reported the Economic Times. 

Bitumen consumption, used primarily in road construction, rose 14.7 percent over May but was nearly 18 percent lower on an annual basis. Fuel oil usage also declined by around 20 percent month-on-month.

Global Energy Developments Shape Market

The data comes amid evolving developments in global energy markets. Indian-produced gasoline has recently been exported to Russia to help address fuel shortages following disruptions to its refining infrastructure.

At the same time the government has revised windfall taxes on petroleum exports with effect from July 1, lowering duties on diesel and aviation turbine fuel exports and increasing the levy on petrol exports.

(KNN Bureau)