Summary:

According to OPEC, India’s oil demand is set to grow faster than any other major economy in 2025 and 2026, more than doubling China’s growth rate. Demand is expected to rise from 5.55 million barrels per day (bpd) in 2024 to 5.74 million bpd in 2025 (a 3.39% increase), and to 5.99 million bpd in 2026 (a 4.28% increase). The United States remains the largest consumer, followed by China, with India ranking third in absolute consumption. Global demand is forecast to grow by 1.3 million bpd annually.

India’s strong economic expansion, fueled by consumer spending, investment, and government support, is driving higher oil consumption. Diesel demand rises as road development projects increase bitumen use. Transportation fuel, manufacturing, and petrochemical needs further boost oil consumption. Despite potential impacts from US tariffs on GDP, fiscal and monetary stimulus are expected to mitigate these effects. India imports over 85% of its crude oil, with a record 5.4 million bpd in March—36% from Russia, 17% from Iraq, and 11% from Saudi Arabia. Product imports increased 2% month-on-month, led by LPG, while exports remained steady despite a slight decline.

Source: IBEF 

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