NEW DELHI: India’s oil demand is projected to increase by 0.2 million barrels per day (mb/d) year-on-year (YoY) in the next two quarters, according to the Organization of Petroleum Exporting Countries (OPEC).
As per the monthly oil marketing report, diesel is projected to be the driver of oil demand growth, supported mostly by agriculture, construction, and manufacturing activities. Moreover, annual traditional festivities are expected to support transportation activity and boost petrol, while the ongoing air travel recovery is expected to bolster jet or kerosene demand.
“Overall, India is expected to see healthy oil demand growth of 228 tb/d, YoY, in 2024. The healthy economic momentum in 2024 is expected to continue into 2025. Furthermore, manufacturing and business activities in India are expected to be steady, supporting an oil demand increase of 228 tb/d, y-o-y,” reads the report.
However, in February, the country witnessed a notable decline in crude oil imports, dropping by 11% month-on-month (MoM) to reach 4.5 million barrels per day (mb/d). Last year, there was a 10% decrease in imports for the same period.
In February 2024, India witnessed a significant increase in product imports, including Liquefied Petroleum Gas (LPG), which surged by 118 thousand barrels per day (tb/d) or nearly 10% MoM), averaging 1.2 mb/d. According to the OPEC report, this growth was observed across all major product categories, with LPG leading the way. However, year-on-year (y-o-y), product imports experienced a decrease of 78 tb/d or almost 7%.
Meanwhile, India’s export of petroleum products showed a significant recovery, surging by 18% to 1.4 mb/d.