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Updated February 18th, 2024 at 19:21 IST

India’s oil demand up by 8.2 per cent in January: S&P Global Commodity

S&P Global Commodity Insights also underscored the role of gasoil and gasoline, each projected to contribute 33 per cent and 31.5 per cent to this growth.

Reported by: Business Desk
Crude Oil
Crude Oil | Image:Unsplash
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India’s rising oil demand: India's appetite for oil is surging, marking an impressive 8.2 YoY growth in January, a trend expected to persist with an anticipated additional 200,000 barrels per day (b/d) in 2024, the S&P Global Commodity Insights said. 

S&P Global Commodity Insights also underscored the role of gasoil and gasoline, each projected to contribute 33 per cent and 31.5 per cent to this growth.

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January's spike was led by LPG and gasoline, responding to winter heating needs and increased mobility post-holidays. However, jet fuel faced headwinds as fog-induced flight disruptions impacted consumption.

Diesel consumption, up by 3.7 per cent annually, faced a setback of 43,000 b/d due to dense fog in northern India, hindering highway mobility and slowing construction and industrial activities. Gasoil demand is predicted to remain robust in Q1, foreseeing a yearly growth of 50,000 b/d.

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Gasoline demand, reflecting the return to work post-holidays and the adoption of hybrid work models, reached 853,000 b/d in January. With robust sales of gasoline-run vehicles, gasoline demand is expected to witness a growth of 65,000 b/d in Q1 2024, contributing to an overall annual growth of 200,000 b/d compared to 2019 levels.

Jet fuel and kerosene demand, totaling 192,000 b/d in January, experienced a slight moderation due to fog-related flight disruptions but still posted a 7 per cent YoY increase.

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Looking ahead to 2024, the overall oil demand outlook for India remains positive, with a projected growth of 203,000 b/d. 

Gasoil and gasoline are poised to be the primary growth drivers, making up 33 per cent and 31.5 per cent of the share, respectively. Factors such as robust economic growth, a focus on industrial and construction activities, and the impending general elections in 2024 are expected to sustain this upward trajectory.

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Published February 16th, 2024 at 16:10 IST

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