India's oil demand forecasted to increase to 5.14 million barrels per day in 2023

18 Aug 2022 , 08:59 AM

According to an OPEC report, India’s demand for petroleum products like gasoline and diesel will increase by 7.73% in 2023, the fastest rate in the world. As per OPEC’s monthly oil report, India’s demand for oil products is expected to increase from 4.77 million barrels per day (BPD) in 2022 to 5.14 million BPD in 2023.

Prior to 1.23 percent for China, 3.39 % for the US, and 4.62 % for Europe, the demand growth is the fastest in the world. The Organisation of Petroleum Exporting Countries (OPEC) predicted that India’s consumption would increase by 4.67 % to 5.38 % in 2023. This will, however, be slower than China’s 4.86 %. India is the third-largest importer and consumer of oil in the world, after the US and China.

The country of India’s strong economic growth (7.1%), ongoing economic openness amid loosened COVID regulations, and the reduction of trade-related constraints that promote both transportation and industrial sector activity all contribute to the country’s high demand for petroleum products. According to the report, the third quarter’s (July—September) oil demand will decline because of the monsoon season but rebound in the fourth on the strength of the festival and holiday seasons.