Key Points
- India’s total petroleum product consumption rose by 1.8% in June 2025, reaching 20.31 million metric tonnes despite global tensions.
- Petrol sales jumped 6.7% year-on-year, driven by robust auto sales, rural demand, and strong agricultural output.
- Diesel demand, critical for agriculture and transport, increased by 1.6% to 8.11 million metric tonnes, signaling high economic activity.
- LPG usage soared 9.1%, fueled by rising household incomes, the government’s Ujjwala scheme, and increased commercial demand.
- Naphtha sales grew 2%, supporting fertilizer production, while overall month-on-month fuel demand dipped 4.7% due to early monsoon.
- India remains the world’s third-largest oil consumer and importer.
New Delhi: In June 2025, India’s appetite for petroleum products continued to grow, defying concerns over geopolitical tensions in West Asia. According to the Ministry of Petroleum and Natural Gas, total consumption of key fuels—including petrol, diesel, LPG, and naphtha—rose by 1.8% year-on-year, reaching 20.31 million metric tonnes, up from 19.94 million tonnes in June 2024.
Petrol Sales Accelerate on Strong Auto and Rural Demand
- Petrol consumption surged by 6.7% compared to June last year.
- The growth is attributed to increased sales of cars and two-wheelers, improved rural purchasing power, and a thriving agricultural sector.
- Urbanization and rising mobility needs have further boosted petrol demand nationwide.
Diesel Demand Reflects Economic Momentum
- Diesel usage climbed 1.6% to 8.11 million metric tonnes in June 2025.
- Diesel accounts for nearly 40% of India’s total fuel sales.
- The uptick reflects heightened activity in both agriculture (for irrigation and machinery) and logistics (trucking and freight), indicating sustained economic momentum.
LPG Sales See Double-Digit Growth
- LPG (cooking gas) sales jumped 9.1% to 2.53 million metric tonnes.
- The surge is credited to:
- Growing household incomes and urbanization.
- The government’s Ujjwala scheme, which has expanded LPG access among low-income families.
- Rising commercial usage in hotels, restaurants, and small businesses.
Naphtha and Other Fuels
- Naphtha consumption increased by 2% to 1.03 million metric tonnes, supporting fertilizer and petrochemical industries.
- Other petroleum products also saw varied demand based on industrial and seasonal factors.
Impact of Early Monsoon
- Despite the annual growth, overall petroleum product sales fell 4.7% month-on-month compared to May 2025.
- The early arrival of the monsoon season typically curbs fuel demand, especially in the transport and construction sectors.
Table: India’s Key Petroleum Product Consumption – June 2025
| Product | June 2025 (MMT) | June 2024 (MMT) | Year-on-Year Change |
|---|---|---|---|
| Total Petroleum Products | 20.31 | 19.94 | +1.8% |
| Petrol | N/A | N/A | +6.7% |
| Diesel | 8.11 | ~7.99 | +1.6% |
| LPG | 2.53 | ~2.32 | +9.1% |
| Naphtha | 1.03 | ~1.01 | +2.0% |
MMT: Million Metric Tonnes. Some base figures are approximate for illustration.
What’s Driving India’s Fuel Demand?
- Automotive Sector: Booming vehicle sales and expanding road networks.
- Rural Economy: Improved farm incomes and mechanization.
- Government Initiatives: Subsidized LPG connections and rural electrification.
- Commercial Activity: Growth in hospitality, logistics, and manufacturing.
India’s rising fuel consumption underscores its status as a global energy powerhouse. While global uncertainties and seasonal factors may cause short-term fluctuations, the country’s long-term demand trajectory remains upward, powered by economic growth, urbanization, and expanding energy access.
