India’s Oil Demand to Rise by 1 mb/d by 2030 – IEA

India’s oil demand will increase by 1 million barrels per day (mb/d) over the forecast period through 2030, more than any other country, driven by continued economic expansion and strong consumption of transport and industrial fuels, the International Energy Agency (IEA) said in its Oil 2025 report.

The agency said India’s GDP is projected to grow at an average annual rate of 2.8 per cent in oil-equivalent terms. “India will remain the world’s fastest growing major economy in 2025 for a fourth year running and is projected to overtake Japan as the world’s fourth largest economy this year,” the IEA stated.

“India’s oil demand will increase by a steep 1 mb/d over the forecast period – more than any other country – in the wake of stellar GDP expansion,” it said.

According to the report, transport fuels will lead the gains in India’s oil demand, a trend that contrasts with global patterns where industrial use dominates. Jet/kerosene demand in India is expected to rise at an annual rate of almost 6 per cent. The report attributes this to population growth of 5 per cent between 2025 and 2030 and an expanding middle class that is increasingly spending on foreign travel and luxury services.