Indian Oil Predicts Gasoline Demand Peak by 2035
Indian Oil Corporation expects gasoline demand to peak by 2035 as electric vehicles and ethanol blending rise, while diesel and jet fuel consumption continue to grow.
The Indian Oil Corporation (IOC) predicts that gasoline demand in India will peak by 2035. Chairman A S Sahney attributed the projected decline to the increasing adoption of electric vehicles, ongoing ethanol blending initiatives, and a rise in gas-powered cars.
While gasoline faces pressure, Sahney expects diesel and jet fuel consumption to grow, driven by aviation and industrial expansion. He also anticipates increased demand for bottom-heavy grades, including petcoke and fuel oil. To support these shifts, IOC is evaluating the commercial viability of small modular reactors.
Sahney urged India to strengthen its shipping capabilities and expand crude oil and LPG storage to better utilize discounted crude imports, noting that high freight rates are currently eroding those benefits. This comes as India's average crude oil import basket price reached $120.46 per barrel in October, the highest since March 2012, due to geopolitical uncertainty in West Asia.
Oil Minister Hardeep Singh Puri stated that India will continue exporting diesel to address global shortages. National refining capacity is projected to reach 6.4 million barrels per day by 2032.
