India's total fuel consumption fell to 19.42 million metric tons in June, down 3.7% from May. The decline was largely driven by a sharp 14% year-on-year drop in LPG demand, alongside falling bitumen and fuel oil consumption, reflecting shifting industrial and household consumption patterns.
India’s fuel consumption experienced a notable cooling in June 2026, with total demand sliding 3.7% month-on-month to 19.42 million metric tons. According to the latest data from the Petroleum Planning and Analysis Cell (PPAC), this consumption level also represents a 3.1% decline compared to June 2025. This contraction highlights a period of reduced activity in key sectors that rely heavily on refined petroleum products.
LPG and Industrial Fuel Contraction
The most significant drag on consumption came from liquefied petroleum gas (LPG), which saw a sharp year-on-year drop of over 14%, totaling 2.19 million tons. Interestingly, this dip in local consumption occurred even as India increased its reliance on alternative, higher-cost import sources. In June, LPG imports from the United States reached a record high of over 1 million tons, as the nation moved to secure supply stability amid ongoing disruptions in the Middle East. Beyond LPG, fuel oil usage saw a sharp month-on-month contraction of approximately 20%, signaling a potential slowdown in industrial operations or shipping activities that typically utilize this heavy fuel.
Gasoline and Diesel Trends
Transportation fuels presented a more complex picture. Gasoline sales fell by 3.2% compared to May but maintained a 7.4% growth rate on a year-on-year basis, suggesting that personal mobility remains higher than it was last year despite the recent monthly dip. Diesel consumption, which acts as a primary barometer for industrial and commercial trucking activity, saw a modest 1.4% monthly decline. However, on a year-on-year basis, diesel demand remained 6.2% higher, indicating resilient long-term demand for logistics and infrastructure-linked transport.
Construction Activity Indicators
Data for construction-related fuels showed mixed signals. Bitumen, which is essential for road building and infrastructure development, saw a significant 18% decline compared to the same month last year. While there was a 14.7% monthly recovery, the annual slump suggests a deceleration in major road construction projects or a change in the pace of state-led infrastructure spending. Meanwhile, naphtha sales witnessed a steep 42% year-on-year decline, a metric often monitored by investors to gauge the health of the petrochemicals sector.
For investors, the key monitorable remains how these volume trends translate into the refining margins of state-owned oil marketing companies. A prolonged period of weak demand, particularly in higher-margin products or industrial fuels, can put pressure on the profitability of refiners. Investors should track future PPAC reports to see if the June figures represent a seasonal dip or a sustained trend of lower consumption in the face of volatile global energy prices.