- Producers prioritise higher-value transportation fuels over petcoke
- Domestic supply coverage improves despite lower production
India’s petcoke market remained under pressure in June 2026, with domestic production declining sharply by 14% y-o-y, while consumption remained broadly stable. M-o-m, both production and consumption weakened as seasonal monsoon demand slowed, with domestic output continuing to trail consumption and keeping the market reliant on imports.
Production declines m-o-m and y-o-y
Domestic petcoke production declined 3.8% m-o-m to 1.01 mnt in June from 1.05 mnt in May. Y-o-y, output fell 17.4% from 1.23 mnt recorded in June 2025.
During April-June 2026, cumulative production stood at 3.04 mnt, down 13.9% from 3.54 mnt in the corresponding period last year.
The decline reflects refinery product optimisation, with delayed coking units (DCUs) continuing to prioritise higher-value transportation fuels such as diesel, petrol, and aviation turbine fuel over petcoke. Additionally, geopolitical tensions affecting crude sourcing and shipping through the Strait of Hormuz continued to disrupt refinery operations during the quarter.
Petcoke accounted for 4.5% of India’s total petroleum product output of 22.54 mnt in June, compared with 4.72% in May. During April-June 2026, its share stood at 4.54%, indicating refiners continued focusing on higher-value petroleum products.
Consumption eases during monsoon
Petcoke consumption declined 6.3% m-o-m to 1.50 mnt in June from 1.60 mnt in May. However, consumption remained broadly unchanged compared with 1.50 mnt in June 2025.
Cumulative consumption during April-June 2026 stood at 4.40 mnt, down 9.8% from 4.88 mnt recorded in the corresponding period last year.
The m-o-m decline reflects seasonally weaker industrial fuel demand during the monsoon, particularly from the cement sector, which remains the largest consumer of petcoke. Elevated imported petcoke prices also encouraged some consumers to optimise fuel usage by increasing thermal coal consumption where commercially viable.
Petcoke accounted for 7.72% of India’s total petroleum product consumption in June, compared with 8.05% in May.
Imports continue bridging supply gap
Domestic production met around 67% of June’s consumption, compared with 65.5% in May, indicating a modest improvement in supply coverage despite lower production. During April-June 2026, domestic production accounted for approximately 69% of total consumption, with imports continuing to bridge the remaining demand.
India remains structurally dependent on imported petcoke, particularly for cement, lime kiln, calcium carbide, gasification, and aluminium industries. While imports of raw petcoke and calcined petroleum coke remain regulated under Directorate General of Foreign Trade (DGFT) allocations for specific sectors, cement producers continue to import based on commercial requirements.
Outlook
Petcoke demand is expected to remain largely requirement-based during the remainder of the monsoon season. While refinery production could improve as crude supply chains stabilise, domestic output is likely to remain below consumption, ensuring continued reliance on imports to meet industrial demand.
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