Early Rains Lead to Sluggish Fuel Consumption in India

Early monsoon rains across India have resulted in a decline in fuel consumption for June, impacting both diesel and petrol sales, according to industry data. The unexpected weather conditions have reduced demand for irrigation and vehicular movement, causing diesel consumption to drop to negative territory after previous growth.

Unseasonal early rains across India have dampened fuel consumption in June, with diesel usage slipping into negative territory after two months of growth, provisional industry data reveals. The sudden arrival of the monsoon has diminished the need for irrigation and impacted vehicular movement, leading to a noticeable decline in fuel demand.

Despite May witnessing close to a 9% rise in petrol demand, June reported a slowdown, with consumption easing to 2.3% growth at 1.4 million tonnes for the first half of the month. Diesel consumption also dropped by 4.8%, tallying at 3.26 million tonnes between June 1 and June 15.

While diesel acts as a lifeline for India's transport and rural agricultural economy, its demand only grew 2% in the fiscal year ending March 31, 2025, experiencing negative growth for most months. The monsoon's early advent has further dampened travel and irrigation demands, marking a tepid start to the summer fuel season.

(With inputs from agencies.)