With global oil demand projected to rise, India is expected to play a pivotal role in shaping the energy landscape.India’s oil product demand rose by 419,000 barrels per day (tb/d) in November 2024, marking a 7.9% year-on-year increase, as diesel, gasoline, and LPG consumption drove growth, according to the OPEC monthly oil market report.
Diesel demand surged by 8.9% to 2.05 million barrels per day (mb/d), while gasoline use climbed 10% to 0.98 mb/d. LPG consumption increased by 7.3% to 1.04 mb/d.
Crude oil imports stood steady at 4.7 mb/d in November, recording a 3% rise from the previous year. Russia remained India’s top supplier, accounting for 38% of imports, followed by Iraq at 19% and Saudi Arabia at 13%. Product exports reached an eight-month high of 1.4 mb/d, driven by higher outflows of gasoline and naphtha.
Global oil demand is projected to grow by 1.4 mb/d in 2025, reaching 106.6 mb/d, with non-OECD countries, including India, contributing significantly to the increase. India’s energy needs continue to rise alongside infrastructure expansion and economic development, positioning the country as a major driver of global demand.
While oil consumption grows, India is advancing its renewable energy agenda to meet its Updated Nationally Determined Contributions (NDCs) under the Paris Agreement. The country aims to achieve 50% of its installed power capacity from non-fossil fuels by 2030. Government initiatives include promoting electric vehicles (EVs), expanding advanced battery manufacturing, and developing green hydrogen projects.
The report emphasized India’s focus on sustainable energy development, with significant investments planned to balance rising energy demand and decarbonization efforts. The government’s infrastructure expansion, including roads and airports, supports both economic growth and energy efficiency.
India’s steady growth in crude imports and increasing focus on renewable energy reflect its dual approach to meeting energy security while advancing sustainability goals. With global oil demand projected to rise, India is expected to play a pivotal role in shaping the energy landscape.
