India, the world’s third-largest crude oil importer, is expected to see its oil demand surge by eight million barrels per day (mb/d) from 2023 to 2050, marking the highest growth rate globally, according to OPEC’s World Oil Outlook (WOO) report.
The report forecasts that oil consumption in India’s rapidly growing economy will increase from 5.3 mb/d in 2023 to 13.3 mb/d by 2050. In comparison, China’s oil demand is expected to rise by 2.5 mb/d during the same period.
Currently, diesel and gasoil comprise a significant portion of India’s oil demand, accounting for approximately 35%. This share is projected to grow to 38% by 2040 before tapering to 37% by 2050, largely due to increases in freight transport and industrial activities.
The petrochemical sector, along with the commercial and agricultural industries, will also contribute to this demand growth. Diesel consumption is expected to rise from around 1.9 mb/d in 2023 to 4.9 mb/d by 2050.
The WOO report indicates that road transportation will be the main contributor to the increase in demand, with over half of the total growth projected to occur in this sector. As reported by thehindubusinessline.com, the surge will be largely fuelled by a substantial expansion in the country’s passenger car fleet, which is expected to grow from fewer than 50 million vehicles in 2023 to more than 240 million by 2050 (excluding two-wheelers).
