Indian Economy News

Organisation of the Petroleum Exporting Countries (OPEC) sees India's oil demand rising by 3.4% in 2025, double the pace of China

India's oil demand is forecast to grow fastest among major economies in 2025 and 2026, doubling the pace of China’s growth, according to the Organisation of the Petroleum Exporting Countries (OPEC) latest global outlook. India's demand is projected to rise from 5.55 million barrels per day (bpd) in 2024 to 5.74 million bpd in 2025, a 3.39% increase, and further to 5.99 million bpd in 2026, up 4.28%. This growth outpaces China’s projected 1.5% increase in 2025 and 1.25% in 2026. However, the United States will remain the largest consumer, with a demand of 20.5 million bpd in 2025, followed by China at 16.90 million bpd. India ranks third in absolute consumption. OPEC expects global oil demand to grow by 1.3 million bpd in both years, unchanged from prior forecasts.

The report highlights India’s robust economic expansion driven by consumer spending, investment, and government support across key sectors. Diesel remains the primary driver of demand growth, supported by extensive road infrastructure projects boosting bitumen consumption. Strong transport fuel demand, manufacturing growth, and petrochemical feedstock requirements will further support oil demand. Despite recent US tariffs potentially impacting Gross Domestic Product (GDP) growth, fiscal and monetary stimulus are expected to mitigate effects. India relies on imports for over 85% of its crude needs, with crude imports hitting a record 5.4 million bpd in March. Russia accounted for 36% of these imports, followed by Iraq (17%) and Saudi Arabia (11%). Product imports rose by 2% MoM, driven by liquefied petroleum gas (LPG), while exports remained strong despite a slight decline.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.