Key facts
- India's total fuel consumption in June was 19.24 million metric tons, a 3.7% decrease from May.
- Year-on-year fuel consumption declined by 3.1%.
- Gasoline sales rose 7.4% year-on-year, while diesel sales increased by 6.2%.
- India recorded a record crude oil import volume of 5 million barrels per day in June.
- Approximately 2.6 million barrels per day of crude oil imports originated from Russia.
India's fuel consumption saw a decline of 3.7% in June compared to May, totaling 19.24 million metric tons, according to data from the country's oil ministry reported by Reuters. This marks a decrease both month-on-month and year-on-year, with a 3.1% drop from the previous year.
Despite the overall dip in consumption, sales of gasoline and diesel showed year-on-year growth. Gasoline sales were up 7.4% from the previous year, though they decreased by 3.2% on a monthly basis. Diesel sales saw a 6.2% year-on-year increase, while declining 1.4% from May.
Reuters suggested that sales of gasoline to Russia may have contributed to the year-on-year increase, as Ukrainian drone attacks on Russian refineries have led to fuel shortages there. India, the world's third-largest oil importer, has been significantly impacted by supply tightness, particularly due to disruptions involving the Strait of Hormuz.
Earlier in the year, India's crude oil inventories were depleted in March and April. However, refiners subsequently increased imports from Russia and Venezuela, sources that do not require transit through the Strait of Hormuz. This strategy helped secure domestic supply but did not prevent price increases, with four price hikes occurring within a single month.
In June, India achieved a record high in crude oil imports, reaching 5 million barrels per day. More than half of this volume, specifically 2.6 million barrels per day, was sourced from Russia, facilitated by a U.S. waiver on Russian oil already loaded onto tankers. Although this waiver has expired, increased exports from the Middle East are expected to help India secure its crude oil needs in the coming months.