India to Lead Global Oil Demand Surge: IEA Report Highlights

According to the International Energy Agency (IEA), India will drive global oil demand in the second half of this decade. Forecasts indicate a rise in consumption by 1.3 million barrels from 2023 to 2030, fueled by economic expansion and a growing population, with road transport fuels leading the demand.

India is set to become the driving force behind global oil demand in the second half of this decade, according to a new report by the International Energy Agency (IEA). The Paris-based organization forecasts that India's oil consumption will increase by 1.3 million barrels per day (bpd) between 2023 and 2030.

The report, titled 'Oil 2024,' reveals that India's oil demand is slated to rise from 5.4 million bpd in 2023 to 6.7 million bpd by 2030, a 3.2 percent growth rate. Notably, the country's demand for road transport fuels is expected to dominate this increase, outpacing the growth in petrochemical feedstocks.

This surge in oil consumption is attributed to India's rapidly expanding economy, which is projected to be the fastest-growing major economy for the third consecutive year in 2024. The nation's burgeoning population, coupled with rising average incomes, further supports the escalating mobility demand. The IEA forecasts India's refining capacity will grow to 6.8 million bpd by 2030, with import needs rising by nearly 1 million bpd.