New Delhi: India’s oil demand surged by 7.9% in November 2024, reaching an increase of 419,000 barrels per day (bpd), driven by higher consumption of diesel, gasoline, and LPG, according to the latest report from OPEC. This growth comes as India continues to expand its infrastructure and economy, solidifying its position as a key player in the global oil market.
Diesel demand saw a notable rise of 8.9%, reaching 2.05 million barrels per day (mb/d), while gasoline use climbed by 10%, hitting 0.98 mb/d. LPG consumption also rose by 7.3%, reaching 1.04 mb/d. Despite the demand growth, crude oil imports remained steady at 4.7 mb/d, reflecting a 3% increase from the previous year.
India’s key suppliers remained unchanged, with Russia continuing to dominate, accounting for 38% of India’s crude imports. Iraq followed at 19%, while Saudi Arabia supplied 13% of the country’s needs. Meanwhile, India’s oil product exports reached an eight-month high of 1.4 mb/d, driven by increased shipments of gasoline and naphtha.
On a global scale, oil demand is expected to grow by 1.4 million barrels per day (mb/d) in 2025, reaching 106.6 mb/d. Non-OECD countries, especially India, will play a crucial role in this increase as the country’s energy needs continue to rise alongside its rapid infrastructure and economic development.
Energy Transition and Renewable Investments
Despite the growing demand for oil, India is also focusing on renewable energy to meet its climate targets under the Paris Agreement. The government aims to ensure that 50% of the country’s power capacity comes from non-fossil fuels by 2030. Key initiatives include promoting electric vehicles (EVs), expanding advanced battery manufacturing, and developing green hydrogen projects.
The government is making significant investments to balance the rising energy demand with its decarbonization efforts. Infrastructure expansion, such as new roads and airports, is also expected to enhance both economic growth and energy efficiency, further supporting India’s transition to sustainable energy.
Outlook
India’s dual approach—steadily increasing crude imports while boosting renewable energy efforts—positions the country as a central player in the global energy landscape. As global oil demand rises, India is expected to play an even more influential role in shaping energy markets and sustainability goals in the coming years.
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