India’s fuel demand saw an uptick in 2024 as the country’s energy consumption continues to grow amid the aim of becoming a ‘Viksit Bharat’ by 2047.
According to the oil ministry data, India’s petrol consumption rose by almost 8 percent in the year till November from the previous year, while diesel—the most consumed petroleum product in the country—witnessed a growth of 2.4 percent in the same period.
The increased fuel consumption of the country could be attributed to the rise in industrial activity and economic growth.
In 2024, India’s diesel consumption reached 83,087 tonnes by November, according to official data, while petrol consumption stood at 36,137 tonnes during the same period. Domestic demand of other petroleum products such as aviation turbine fuel (ATF) and liquefied petroleum gas (LPG) also saw significant growth in the year.
Fuel demand in 2024
The growth momentum in demand of diesel—mainly used by trucks, commercially run passenger vehicles and farm machinery—was relatively steady in the year majorly due to prolonged monsoons in the year and a change in consumption pattern. Amid expanding middle class and rising consumer spending, India’s petrol demand is picking up over diesel.
Amid rising demand, India’s oil companies including Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) have plans to set up new refineries while increasing capacity of existing refineries.
Demand outlook
Despite growing focus on alternative fuels, India’s reliance on oil for meeting its energy demand is expected to remain strong in the coming years.
The government has stated that it expects India to become the largest contributor to the rise in global oil demand by 2030, as growth in developed economies and China is projected to initially slow and eventually decline.
According to the government’s Indian Oil Market Outlook to 2030 report, massive industrial expansion would translate into robust diesel demand, accounting for almost half of the rise in the nation’s demand and more than one-sixth of total global oil demand growth through to 2030.
India’s petroleum product demand is projected to grow by nearly 2 million barrels per day (bpd) by 2035, an analysis by S&P Global Commodity Insights has said.
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