India’s oil demand rises on improving economy

Higher demand in the world's third-largest oil importing nation could lead to increased crude imports.

PHOTO: The Indian flag with an oil pumpjack in the background. Getty Images

India’s total fossil fuel consumption in February, including naphtha and LPG, rose by 5.6% on the year to 19.7 million mt (nearly 5 million b/d), backed by strong industrial activity.

According to the Organization of the Petroleum Exporting Countries (OPEC), India’s crude oil demand is set to reach 5.56 million b/d this year and 5.79 million b/d in 2025, from a total of 5.34 million b/d reported in 2023.

Emerging economies like India, “may surpass expectations, demonstrating improved domestic demand and trade,” OPEC said in its latest monthly oil market report. “Overall, India is expected to see healthy oil demand growth of 220,000 b/d year-on-year in 2024,” it added.

By Aparupa Mazumder 

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