By Charles Kennedy – Jan 02, 2025, 1:03 AM CST
Holiday travel caused a surge in the demand for gasoline and diesel last month in India, with gasoline seeing a 9.8% increase to 2.99 million tons in December, and diesel demand up 4.9% to 7.07 million tons, the Economic Times reported, citing data from state-owned refiners.
The report noted that the solid increase in demand comes after months of tepid consumption on the back of seasonal factors: during the monsoon season, there is not as much travel in India as there is outside that season. There is also subdued agricultural activity during the monsoon, which affects diesel demand.
The report also noted that diesel is the most consumed fuel in India. It accounts for as much as 40% of oil product consumption, with the transport sector accounting for 70% of the national total in diesel sales.
India has been the second-biggest source of global oil demand growth and is about to become the first, overtaking China as the latter boosts EV sales and LNG-powered truck sales. India is expected to account for 25% of global oil demand growth this year, the EIA recently said, adding that it was expected to cover the same percentage of global demand growth in 2024. For last year, Indian oil consumption growth was estimated at around 220,000 barrels per day, compared to China’s 90,000 bpd growth.
In 2025, Indian oil demand is set to grow by 330,000 bpd. China will see a higher growth rate next year compared to this year’s weaker-than-expected increase. Yet, at 250,000 bpd growth in 2025, China will still lag India’s consumption increase, according to the EIA.
According to S&P Global Commodity Insights, India’s oil demand growth was more modest last year, at 180,000 barrels daily, which compared to 148,000 barrels daily for China. The analytical outlet also believes India will overtake China as the biggest driver of demand growth this year, adding 3.2% in 2024, compared to 1.7% for China.
By Charles Kennedy for Oilprice.com
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By Charles Kennedy – Jan 02, 2025, 1:03 AM CST
Holiday travel caused a surge in the demand for gasoline and diesel last month in India, with gasoline seeing a 9.8% increase to 2.99 million tons in December, and diesel demand up 4.9% to 7.07 million tons, the Economic Times reported, citing data from state-owned refiners.
The report noted that the solid increase in demand comes after months of tepid consumption on the back of seasonal factors: during the monsoon season, there is not as much travel in India as there is outside that season. There is also subdued agricultural activity during the monsoon, which affects diesel demand.
The report also noted that diesel is the most consumed fuel in India. It accounts for as much as 40% of oil product consumption, with the transport sector accounting for 70% of the national total in diesel sales.
India has been the second-biggest source of global oil demand growth and is about to become the first, overtaking China as the latter boosts EV sales and LNG-powered truck sales. India is expected to account for 25% of global oil demand growth this year, the EIA recently said, adding that it was expected to cover the same percentage of global demand growth in 2024. For last year, Indian oil consumption growth was estimated at around 220,000 barrels per day, compared to China’s 90,000 bpd growth.
In 2025, Indian oil demand is set to grow by 330,000 bpd. China will see a higher growth rate next year compared to this year’s weaker-than-expected increase. Yet, at 250,000 bpd growth in 2025, China will still lag India’s consumption increase, according to the EIA.
According to S&P Global Commodity Insights, India’s oil demand growth was more modest last year, at 180,000 barrels daily, which compared to 148,000 barrels daily for China. The analytical outlet also believes India will overtake China as the biggest driver of demand growth this year, adding 3.2% in 2024, compared to 1.7% for China.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com
- A Look at the Geopolitical Landscape Heading into 2025
- Oil Demand Stays Strong Despite EV Surge
- Exxon and Chevron Expand Global Hiring Push
