By Rishi Ranjan Kala
India鈥檚 consumption of key transport fuels鈥攄iesel, petrol, and jet fuel鈥攄eclined in June 2025 after surging to record levels in May, as the early commencement of the monsoons impacted mobility, particularly in the second fortnight.
According to the Petroleum Planning & Analysis Cell (PPAC), India鈥檚 diesel consumption fell by 5.72 per cent M-o-M to around 8.08 million tonnes (mt) on a provisional basis during June 2025. However, usage was higher by 1.24 per cent on an annual basis.
Similarly, petrol consumption declined 6.88 per cent M-o-M to roughly 3.51 mt last month. However, usage increased by 6.43 per cent Y-o-Y. Aviation turbine fuel (ATF) usage fell 5.55 per cent M-o-M to 732,000 tonnes, but was higher by 3.54 per cent Y-o-Y.
Last week, the businessline reported that the Southwest monsoon covered the entire country on June 29, nine days earlier than its normal schedule, and the quickest in the last five years. Even though actual rainfall during June 1-15 was below normal, the monsoons revived from June 15-16, helping to build up precipitation in the second half.
Sustained consumption
Analysts said that transport fuel consumption has been inching up since March this year, culminating in record usage during March to May, backed by robust industrial, commercial and mining activity.
In June, the lull in rains during the first fortnight supported higher consumption. Early sowing was another positive.
With fuel consumption remaining near record levels in June, a senior official with a domestic refiner said there was increased activity across key horticulture hubs.
鈥淏esides, higher goods movements were supported by pre-stocking for monsoons. Vacation travel boosted petrol consumption. Jet fuel usage will continue to grow at a similar pace as domestic and international travel expands and more airports become operational,鈥 he added.
Furthermore, said an analyst, growing affluence is driving up personal vehicle purchases, particularly two-wheelers and four-wheelers.
Besides, better highway infrastructure and sustained tourism push also boosted gasoline demand. The majority of consumption is driven by the personal mobility segment. Also, the trend of people purchasing more gasoline-driven SUVs is also bolstering demand.
Since March this year, India鈥檚 consumption of the three transport fuels has been near record levels, with May recording an all-time high.
Since March 2025, the consumption of diesel has averaged 8.24 mt, while petrol and ATF usage have averaged 3.56 mt and 769,000 tonnes, respectively.
Last month, the industry chamber PHDCCI released a report stating that the demand for refined petroleum products in India is expected to grow at a compound annual growth rate (CAGR) of 5.37 per cent until 2030.
The demand for POL (Petroleum Oil & Lubricants) products will be primarily driven by the manufacturing and transportation sectors (both land and air) through 2030. Light Diesel Oil (LDO), petrol, aviation turbine fuel (ATF), and petroleum coke led the demand surge by 8.64 per cent, 8.23 per cent, 8.01 per cent, and 7.52 per cent, respectively.
Published on July 2, 2025