India’s Fuel Consumption Falls 3.7% in June 2026; LPG Demand Drops Sharply

 India's fuel consumption declined to 19.42 million metric tonnes in June, according to data released by the Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum, as per Reuters reports. 

Consumption fell 3.7% from 20.18 million metric tonnes recorded in May and was also 3.1% lower compared with June last year. 

Petrol and Diesel Sales Show Mixed Trend in June 2026 

Petrol consumption declined 3.2% from May 2026, but remained 7.4% higher than a year earlier. 

Diesel demand also eased 1.4% month-on-month, although it recorded 6.2% year-on-year growth during the month. 

LPG, Naphtha and Fuel Oil Sales Decline 

LPG consumption fell by more than 14% from a year earlier to 2.19 million metric tonnes. 

Naphtha sales dropped 42% year-on-year, while fuel oil consumption declined by about 20% compared with May. Bitumen consumption, mainly used in road construction, rose 14.7% month-on-month but remained around 18% lower than a year ago. 

Imports And Industry Developments 

Industry sources had earlier indicated that India's LPG imports from the United States were expected to exceed 1 million tonnes in June, a record high, as buyers turned to costlier supplies following disruptions in the Middle East. 

Separately, traders sold gasoline produced by Nayara Energy to Russia, which has been facing fuel shortages after Ukrainian attacks on its energy infrastructure. 

Export Duty Revision 

The government revised windfall taxes on petroleum exports, with the new rates taking effect from 1 July 2026. 

The revised structure lowered windfall taxes on diesel and aviation turbine fuel (ATF) exports, while increasing the duty on petrol exports. 

Read More: Government Mulls LNG Buffer Stock Mandate for Import Terminals, Eyes Higher Regasification Charges! 

Conclusion 

India's fuel demand softened in June, with overall consumption declining on both a monthly and annual basis. While petrol and diesel registered year-on-year growth, lower consumption of LPG, naphtha and fuel oil weighed on overall petroleum demand during the month.   

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