India's June fuel demand rises 2.83 percent - government

NEW DELHI (Reuters) - India's annual fuel demand rose 2.83 percent in June but it slowed compared to the previous month as better monsoon and improved power supply crimped demand for fuels, government data showed on Thursday.

Local oil product sales, a proxy for domestic oil demand in the world's fourth-largest oil consumer, rose to 14.4 million tonnes in June, data posted on Petroleum Planning and Analysis Cell (PPAC) website showed.

PPAC has revised fuel consumption data for May leading to an annual 3.66 percent jump in demand during the month.

India's fuel consumption normally softens during the four- month monsoon season to September as rains curb demand from transport, farm and construction sector.

Improved rains in June dampened demand for almost all the fuels compared to May.

Diesel, which makes up over a third of refined products consumption, registered an annual growth of 2.5 percent in sales in June contrary to an annual decline in May.

However, diesel sales at 6.29 million tonnes in the month was lower than that in May as a heavy downpour early last month had lifted the rain surplus to 28 percent, reducing demand from farm and construction sectors.

Petrol sales last month rose an annual 9.85 percent to 1.77 million tonnes, compared with 1.83 million tonnes sold in May. Monthly gasoline sales in June eased reflecting a dip in passenger vehicle sales in Asia's third-biggest economy.

Naphtha consumption during June declined an annual 5.63 percent and that of fuel oil fell by 5.22 percent.

Sales of liquefied petroleum gas in June rose 10.22 percent to about 1.49 million tonnes.

(Reporting by Nidhi Verma; Editing by Gopakumar Warrier)