In the international market, crude oil prices have seen a rise of up to 40 in the last few weeks, but despite expensive crude oil, there can be a tremendous increase in the demand for petrol and diesel in India. According to an estimate, the demand for petrol and diesel in the country may increase by 8.2 percent in the next financial year.
According to the Group of Crude Exporting Countries (OPEC), the demand for India, the world’s third largest crude oil importer, may increase by 0.39 million barrels per day in 2022. Whereas the average crude oil demand in India in 2020 was 4.51 million barrels per day, which increased to 4.76 million barrels per day in 2021. During this period, the demand for crude oil saw a jump of 5.61 percent. However, before the Corona period, the demand for crude oil in India in 2018 was 4.98 million barrels per day and 4.99 million barrels per day.
OPEC countries have projected in their Monthly Oil Market Report that India’s economy will grow at a rate of 7.2 per cent in the financial year 2022-23 and traffic in the country will increase as the cases of Omicron virus decrease, due to which the demand for oil will increase. Might be possible. Similarly, with the increase in economic activities, the demand for diesel and LPG will also see an increase from the industrial sector.
The Petroleum Planning and Analysis Cell (PPAC), an organization of the Government of India, has given the estimate. The fuel demand in the country is likely to grow by 5.5 per cent this year.
Crude oil price increased due to war: The price of crude oil has seen a jump of up to 40 percent in the past weeks due to the war between Russia and Ukraine. On March 7, the price of crude oil touched a 14-year high of $140 per barrel. Due to which the prices of petrol and diesel have seen a rise all over the world. However, oil prices have softened after the UAE’s statement of increasing crude oil production. Currently, the price of crude oil is around 100 per barrel.