Early rains dampen fuel demand growth in June
After two months of solid consumption growth, the gasoline demand fell to 2.3 percent in the first half of June, showing sales data of three state fuel retailer controlling approximately 90 percent of the market.
The demand for gasoline increased close to 9 percent in May.
Diesel, between 1 June and 15 June 3.26 million tons of consumption decreased by 4.8 percent.
The most commonly used fuel of India has risen since April – about 4 percent in April and the following month increased by 2 percent.
Diesel, the life line of transportation and rural agriculture economy, saw an increase of only 2 percent in the financial year that ended on March 31, 2025, and witnessed a negative growth in most months. Industrial officials, the early arrival of rains in irrigation caused the decrease in demand, while the vehicle movement also reduced, he said. The Indian Meteorological Department (IMD) declared the beginning of Monsoon on May 24 eight days before 1 June. This early arrival triggered widespread rains in various states, including Karnataka, Maharashtra and North-East.
Generally, the beginning of summer triggers the demand for air conditioning in rural areas and urban areas. Holiday travel also increases demand. However, the demand for diesel in June was warm.
In the first half of June, gasoline sales were less than 7 1.5 million tons in May 1-15. Compared to the same period in June 2023, consumption increased by 7 percent and 30 percent higher than Covid restriction period in June 2021.
On the other hand, the diesel demand was 5.2 percent lower than the consumption of 1-15 June 2023 and 3.1 percent of the first half of May 2025. However, the restrictions on the removal of the Covid-19 virus were 9.5 percent higher than June 2021, when economic activity decreased.
In April and May this year, the growth in both gasoline and diesel sales was behind the increase in consumption for the election last year.
Jet Fuel (ATF) consumption increased to 3.1 percent on June 1-15 percent this year to 3.1 percent. Atf sales were 8.4 percent higher than consumption on 1-15 May 2023 and on 1-15 June 2021, 12 percent. One month of monthly, the ATF consumption was about 2 percent lower.
On June 1-15, LPG continued to rise to 1.27 million tons with 4 percent growth on June 1-15, directed by Ujjwala connections. Since 2019, fuel consumption has increased by an annual growth rate of 37 percent (CAGR).
However, cooking gas sales were 6 percent lower than 1.35 million tons of consumption on 1-15 May. According to the data, its use is 10.7 percent of consumption at 1-15 May, 2023 May, 2023 and 32.6.
