India set for record oil demand on recovery from Covid washout

India, once the center of global oil demand growth, expects its fuel consumption to bounce back during the coming year as the nation recoups the losses caused by Covid-19.

Following the historic drop in global crude oil process, the Indian government actively considered increasing its oil stockpile both inside the country and also overseas. (Representational photo) (REUTERS)
Following the historic drop in global crude oil process, the Indian government actively considered increasing its oil stockpile both inside the country and also overseas. (Representational photo)

Demand for gasoline, diesel and other fuels will reach a record 215.24 million tons in the 12 months through March 2022, according to estimates by the Petroleum Planning and Analysis Cell of India’s oil ministry. That’s almost a 10% rebound from the current year, which has been hit hard by the virus.

At one stage last year, India’s fuel consumption plunged by as much as 70%, led by the world’s biggest lockdown. The measures forced a sharp reduction in crude processing and imports, and helped drive a slump in international oil prices. On Thursday, the Organization of Petroleum Exporting Countries and allied nations will discuss how much crude to pump, and India is urging them to open the taps.

Also check these Vehicles

Find more Cars
Benling India Benling Kriti (HT Auto photo)
₹ 56,940 - 66,121**Ex-showroom price
Add to compare
Check latest offers
Benling India Benling Aura (HT Auto photo)
₹73,000**Ex-showroom price
Add to compare
Benling India Benling Falcon (HT Auto photo)
₹ 62,200 - 71,248**Ex-showroom price
Add to compare
Check latest offers
Hcd India Nps Cargo (HT Auto photo)
₹ 54,500 - 58,500**Ex-showroom price
Add to compare
Check latest offers
Hero Splendor Plus (HT Auto photo)
₹ 75,141 - 76,486**Ex-showroom price
Add to compare
Check latest offers
Yamaha Mt-15 (HT Auto photo)
₹ 1.69 - 1.74 Lakhs* *Ex-showroom price
Add to compare
Check latest offers

Also Read : OPEC+ cuts has Indian refiners turning to spot oil from Africa and North America

The world’s No. 3 oil importer and consumer expects strong demand for transport and industrial fuels to drive next year’s rebound. Consumption of diesel -- an economic barometer and the country’s most-used fuel -- will grow by more than 13%, as will demand for gasoline. Overall fuel demand in the current financial year, which runs to March 31, is expected to fall 8.5%.

India’s economy pulled itself out of recession last quarter, helped by a boost in government spending and the reopening of an economy that’s mainly driven by domestic consumption. It was one of the few major economies to post growth in the final three months of 2020.

A trend for more commuters to use personal cars -- instead of buses, trains and other modes of public transport -- is expected to drive India’s demand for gasoline.

Demand for aviation fuel, which suffered the biggest blow, is estimated to grow more than 74% during 2021-22, but will remain a little lower than the pre-pandemic year, the PPAC’s projection showed.

First Published Date: 03 Mar 2021, 09:17 AM IST
NEXT ARTICLE BEGINS
Shopping Bag Shop Now
74% OFF
IDELLA Car Duster, Extendable Long Handle Microfiber Car Duster Exterior Scratch Free Car Cleaning Tool, Car Dust Brush for Truck, Pickup, SUV, RV, Motorcycle, Vehicles Cleaning,(Multicolor)
Rs. 238 Rs. 899
55% OFF
Antson Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable, Portable,Rechargeable Vacuum (2 in 1)
Rs. 899 Rs. 1,999
74% OFF
Microfiber Car Cleaning Soft Brush Ideal as Mop Duster, Washing Brush with Long Handle, Dust Cleaner Car Wash Brush with Handle, Soft Brush Scratch Free, Cleaning Dashboard Curved Design - Grey
Rs. 389 Rs. 1,499
1% OFF
GOODAIR Clear Car Windshield Enhancer | Classic |12 Tablets
Rs. 295 Rs. 299

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
Powered by: Acko Logo
Please be noted that any information provided herein above will be received by Acko General Insurance Limited (“Acko”). By mentioning the above information, you agree to provide these details and information to Acko.
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.