The peak gasoline demand in India is likely to occur by 2035. This prediction is made due to the increased ethanol blending in fuel and greater use of electric and natural gas vehicles.
Pressure on gasoline demand
A S Sahney, Chairman of Indian Oil Corporation (IOC), which is India's largest state-owned refiner, stated at an industry event in Goa that "gasoline is under pressure from all sides" as demand for other refined products is increasing. He also noted that demand for diesel and jet fuel continues to grow due to increased industrial activity and air travel.
Development of biodiesel production and refining capacity
Tarun Kapoor, advisor to the Prime Minister's Office of India, emphasized the need to expand biodiesel production and consumption to enhance the country's energy security. India, the world's third-largest crude oil importer, sourced nearly half of its oil imports from this region before the Middle East conflict and has been forced to pay high prices for alternative oil since the onset of the Iran war.
In June, India launched a new fuel blend with 85% ethanol as part of its fuel mobility program to reduce dependence on imported oil. Meanwhile, Indian refiners are expanding their capacity and exports to meet regional demand.
Amid the global diesel crisis, Hardeep Puri, India's Minister of Petroleum, announced last month that the country will continue to export diesel to meet global demand and alleviate fuel shortages. He stated at an industry event in New Delhi in September, "We honor our commitments," and noted that India's refining capacity continues to grow due to investments made in previous years.
India's refining capacity currently stands at about 5.36 million barrels per day, and according to Puri, this figure will reach 5.8 million barrels per day by next year. India aims to increase its refining capacity to 6.4 million barrels per day by 2032.
