SHORT TAKE India's fuel demand fell 4.7% month on month in June
India is the world's third-largest consumer and importer of oil. The data is a proxy for the country's oil demand.
On a yearly basis, fuel demand in June was up 1.9% from 19.94 million tons last year, but was down 4.7% on a month-on-month basis, data on the Petroleum Planning and Analysis Cell's website showed.
Sales of gasoline, or petrol, fell 6.9% to 3.52 million tons in June, compared with 3.78 million tons in May, but were up 6.7% from levels seen a year ago.
Diesel consumption was up 1.6% on a yearly basis and totaled 8.11 million metric tons in June.
Cooking gas or liquefied petroleum gas (LPG) sales decreased 4.9% to 2.53 million metric tons month on month, while naphtha sales rose 3% to 1.03 million metric tons.
On a yearly basis, LPG and naphtha sales rose 9.1% and about 2%, respectively.
Sales of bitumen, used for making roads, were 16% lower in June, in comparison with May.
"Due to the seasonality in Indian demand – demand falls during the monsoon season – June demand is lower than May. Normally demand is trending seasonally lower until August/September," UBS analyst Giovanni Staunovo said.
India's services sector enjoyed its strongest growth in ten months in June, fuelled by robust demand and cooling price pressures, a survey showed on Thursday.
India will take measures to safeguard domestic fuel supplies, oil minister Hardeep Singh Puri said last month, after U.S. attacks on Iran's nuclear sites raised the risk of disruption of Middle Eastern oil and gas and soaring energy prices.
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