Oil Demand Growth 23-24

Domestic oil demand growth will rise to 5% in 2023-24 after a scorching expansion of nearly 10% in this financial year, the petroleum and natural gas ministry’s Petroleum Planning and Analysis Cell (PPAC) has forecasted this data.

India will consume 233.8 million metric tonnes (MMT) of refined products in 2023-24 compared to the estimated consumption of 222.9 MMT in this fiscal, the PPAC has forecast on its website without offering any explanation for the estimates.

Between April 2022 and January this year, petroleum products consumption increased 9.6% year-on-year to 183.3 MMT, with diesel and petrol consumption surging 14% and 14.5% respectively. The demand for aviation turbine fuel (ATF) has risen 52%.

Demand growth of 4.3% for diesel and 7.7% for petrol has been forecasted by PPAC in 2023-24. The ATF demand growth has been forecast at 16.4%.

Domestic oil demand growth will slow to 5% in 2023-24, down from nearly 10% this fiscal year, according to the petroleum and natural gas ministry’s Petroleum planning and Analysis Cell (PPAC).

India will consume 233.8 million metric tonnes (MMT) of refined products in 2023-24 compared to the estimated consumption of 222.9 MMT in this fiscal, the PPAC has forecast on its website without offering any explanation for the estimates.

Petroleum product consumption increased 9.6% year on year to 183.3 MMT between April 2022 and January this year, with both gasoline and diesel consumption increasing 14% and 14.5%, respectively. Aviation turbine fuel (ATF) demand has increased by 52%.

Fuel consumption is a barometer of national economic activity, and rapid demand growth this year has been aided by increased industrial activity, consumer demand and vehicle sales. Diesel, which comprises about 40% of demand for petroleum products in the country, is heavily used for long-haul transport, farming, and mining activity. Many industries got surprised for the remarkable growth in this year. Lower availability of grid power also boosts demand for diesel.

Petrol demand has been supported by the return to office of most employees who had been working from home during the pandemic. A sharp increase in holiday travel has also boosted the demand for petrol, diesel and jet fuel.