India To Drive Global Oil Demand

Panaji, Feb 7 (KNN) India is projected to drive the world's oil demand growth significantly from 2023 to 2030, surpassing China as the top importer, according to the International Energy Agency (IEA).

The IEA released this information during the India Energy Week in Goa on Wednesday.

The report states that India, ranked as the third-largest oil importer and consumer globally, is expected to increase its oil demand by nearly 1.2 million barrels per day (bpd) during this period.

This growth accounts for more than one-third of the total projected global increase of 3.2 million bpd. By 2030, India's oil demand is forecasted to reach 6.6 million bpd, up from 5.5 million bpd in 2023.

The IEA highlighted that India will become the primary driver of global oil demand growth until 2030, while growth in developed economies and China may slow down and even reverse.

To meet this rising demand, India plans to add 1 million bpd of new refining capacity over the next seven years, which will further increase its crude imports to 5.8 million bpd by 2030, as per the IEA.

Diesel is expected to be the largest contributor to India's oil demand growth due to significant industrial expansion, representing almost half of the nation's demand increase and over one-sixth of total global oil demand growth by 2030, according to the IEA.

Jet fuel consumption in India is predicted to grow by an average of 5.9 per cent annually, albeit from a lower starting point compared to other nations, the IEA added.

However, the IEA also noted that the electrification of India's vehicle fleet will result in a more modest 0.7 per cent annual growth in gasoline consumption.

Furthermore, the introduction of new electric vehicles and energy efficiency enhancements could prevent an additional 480,000 bpd of oil demand by 2030.

(KNN Bureau)