India's petrol consumption doubles in a decade
India now consumes more than double the petrol it used a decade ago as new and larger vehicles are selling at a scorching pace. Diesel consumption is up by about a third while the overall oil demand is up by half.
«The data show that fossil fuels continue to be in demand despite policy push for EVs (electric vehicles) and renewables. From the trajectory of demand numbers, it appears that oil will continue to be in demand for some time and peak oil demand in India is not likely before 2040,» said Mukesh Surana, CEO, Ratnagiri Refinery & Petrochemicals Ltd. «It's a positive trend for Indian refiners, at least for the next 10 years.»
Between 2013-14 and 2023-24, the annual consumption of petrol increased 117%, diesel 31%, aviation turbine fuel 50% and LPG 82%, according to the petroleum and natural gas ministry data. Kerosene consumption slumped 93% during this period as the government's clean cooking drive increased access to LPG.
Preference for petrol-powered vehicles has grown in a decade as deregulation has sharply shrunk the traditional price advantage diesel previously enjoyed. «Petrol vehicles also require lower maintenance, and are now available in EV hybrid variants,» said Surana, who was earlier chairman of Hindustan Petroleum Corporation.
Petrol consumption has also been boosted by more people buying cars after Covid-19, higher disposable income and an aspirational middle class, he said. On the other hand, the diesel demand, which makes up about 38% of India's total oil consumption, has been impacted by
