India's fuel demand slips in June on monsoon lull
(Reuters) - India's fuel demand eased 3.7% in June month-on-month, government data showed on Friday, as monsoon rains restricted mobility in the world's third-biggest oil consumer.
Consumption of fuel, a proxy for oil demand, totaled 19.31 million tons in June, down from 20.06 million tons in May, data from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry showed.
Sales of diesel, mainly used by trucks and commercially run passenger vehicles, decreased about 3.7% in June to 7.91 million tons from a month earlier.
In May, diesel sales hit an all-time high of 8.22 million tons, as per PPAC data going back until 1998.
"Seasonality is starting to kick in as the monsoon season-driven demand decline starts to transpire ... compared to June, we expect oil demand to come in only marginally lower in July," said Viktor Katona, lead crude analyst at Kpler.
Fuel demand in India, the world's third biggest oil importer and consumer, typically falls during the four-month monsoon season beginning in June as parts of the country are hit by heavy floods.
"Cyclone Biparjoy also adversely impacted bunkering operations across the country as ports in Gujarat were forced to shut for several days, adding to the seasonal downside," Katona said.
This year, the monsoon arrived on the coast of southern Kerala state on June 8, more than a week later than normal, and its progress was later stalled by severe cyclone Biparjoy.
Gasoil, or diesel, accounts for about two-fifths of refined fuel consumption in India and is directly linked to industrial activity.
Sales of gasoline, or petrol, were about 5.9% lower than the previous month at 3.15 million tons.
Cooking gas or liquefied petroleum gas (LPG) sales fell 4.9% to 2.23 million tons and naphtha sales dropped 15% to 976,000 tons.
Sales of bitumen, used for making roads, ticked up 0.8%, and fuel oil use fell 9.8% in June.
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