Soon, India to become 2nd largest oil-demand centre

New Delhi, January 22 

India will surpass China to become the second largest oil demand growth centre globally in 2019 on back of buoyant auto fuel and LPG consumption, research and consultancy group Wood Mackenzie said today.

In a report, Wood Mackenzie said India’s oil demand growth recovered strongly in 2018, overcoming the aftermath of the implementation of GST and demonetisation, and contributed 14% of the global demand growth or 2,45,000 barrels per day.

“We forecast oil demand to grow at the same level in 2019. This will result in India becoming the second largest demand growth centre globally in 2019, behind the US but ahead of China. Transport fuels – gasoline and diesel – and residential LPG will continue to be the two main drivers of oil demand growth,” it said.

According to the US Energy Information Administration, India is currently ranked behind the US and China as the world’s third-largest oil consumer. It consumed 206.2 million tonnes in the 2017-18 fiscal.

During April-December, consumption of petroleum products has been 157.4 million tonnes, up 2.5% over year-ago period.

Mackenzie said diesel, the most consumed fuel in the country, is projected to grow by 6.4% or 1,12,000 bpd year-on-year in 2019 compared with 93,000 bpd in 2018. — PTI

Wood Mackenzie report

• As per the US Energy Information Administration, India is currently ranked behind the US and China as the world’s third-largest oil consumer
• It consumed 206.2 million tonnes (over 4 million barrels per day) in the 2017-18 fiscal
• During April-December in the current fiscal, consumption of petroleum products has been 157.4 million tonnes, up 2.5% over year-ago period