India's overall fuel consumption contracted in June, according to Reuters reporting of data from the country's oil ministry. Total fuel demand fell 3.7% from May, reaching 19.24 million metric tons, and declined 3.1% compared to the same month last year. The decline marks a puzzling divergence from India's robust crude oil procurement, which has reached record levels as Middle Eastern supply channels stabilize.
Despite the broader weakness in fuel consumption, gasoline sales displayed relative resilience. Retail gasoline volumes surged 7.4% year-over-year, though they slipped 3.2% on a monthly basis. According to Reuters, the year-over-year gain in gasoline sales has been partly attributed to increased exports of the fuel to Russia, as Ukrainian drone strikes have disrupted Russian refining infrastructure and forced the nation to seek petroleum products from alternative suppliers.
The divergence between crude imports and fuel consumption suggests India may be building strategic petroleum reserves or processing crude for export markets. The data underscores shifting dynamics in global energy flows as geopolitical disruptions continue to reshape trade patterns across Asia and Eastern Europe.