India's Gasoline Demand Could Peak By 2035 As EVs Gain Ground |

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India's Gasoline Demand Could Peak by 2035 as EVs Gain Ground

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Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,…

India’s gasoline demand is likely to peak by 2035 amid rising ethanol blending and increased use of vehicles running on batteries and natural gas, according to A S Sahney, the chairman of the largest state-owned refiner, Indian Oil Corporation (IOC).

Talking at an industry event in Goa on Wednesday, Sahney said that “Motor spirit is feeling pressure from all sides" as demand for other refined products rises. Diesel and jet fuel demand are set for continued growth amid rising industrial activity and air travel, while demand for fuel oil and petcoke, which represent about 30% of the refining yield, is also set to increase, the executive noted.

India needs to expand biofuel production and consumption to boost its energy security as crude oil prices soar amid the Middle East crisis, Tarun Kapoor, an adviser in India’s Prime Minister’s Office, said last month.

India, the world’s third-largest crude oil importer, which depended on the Middle East for nearly half of its crude oil imports before the war, has been paying a high price for alternative crude supplies since the Iran war began.

India launched in June a new fuel blend with an 85% ethanol component as part of the fuel flex mobility program to reduce dependence on imported oil.

Meanwhile, India’s refiners are expanding capacity and exports to keep the region supplied.

Amid the global diesel crisis, India’s Oil Minister Hardeep Puri said last month that the country would keep exporting diesel to help meet global demand and ease the fuel crunch.

“We honor our commitments,” the minister said at an industry event in New Delhi in September, noting that India’s refining capacity continues to expand thanks to years of investments.

India’s refining capacity today is around 5.36 million barrels per day (bpd), which will rise to 5.8 million bpd over the next year, Puri said. By 2032, India targets to have 6.4 million bpd of refining capacity, the minister noted.

By Tsvetana Paraskova for Oilprice.com

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