The years to come India’s oil demand will grow faster than any other country in the world in the coming decade. India, the world’s third-largest oil importer and consumer, will become the leader in global oil demand in the second half of this decade, the International Energy Agency (IEA) said on Wednesday. The agency has projected a massive increase of 1.3 million barrels per day in consumption between 2023 and 2030. In its ‘Oil 2024 Report’, the agency said that India’s oil demand is estimated to grow more than any other country except China between 2023 and 2030.
There will be an increase of 13 lakh BPD
India’s crude oil demand is projected to grow from 5.4 million barrels per day (bpd) in 2023 to 6.7 million bpd by 2030, an increase of 3.2 per cent or 1.3 million bpd. “Unusually, in global terms, most of the growth of over 1.3 million bpd will be driven by rising demand for road transport fuels. Petrochemical feedstocks will contribute relatively less, and underlying growth will be far outpaced by the deployment of clean energy technologies,” the report said. India’s oil demand will grow by 9 million bpd between 2025 and 2030, far exceeding China’s demand growth of 5.7 million bpd, it said.
Oil demand will reach its peak by 2029
For the world, the IEA forecasts that oil demand will peak in 2029 and begin to decline the year after that. The rise in oil demand in India is driven mainly by a rapidly growing economy. India is set to become the world’s fastest-growing major economy for the third consecutive year in 2024.
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