However, the government has estimated a growth of 2.5% in the consumption of LPG, while demand for diesel is seen rising 3%.
Representation image (Photo: iStock)
A recent data published by the Petroleum Planning and Analysis Cell has stated that India’s demand for refined oil products is likely to see a modest 3% growth in the upcoming financial year 2024-25.
It is worth highlighting that the growth will be lowest since FY22.
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The data highlighted that the country’s demand for petroleum products, including jet fuel, diesel, LPG, among others ,is likely to grow to 239 million tonne in the financial year beginning April 1. The country’s consumption of petroleum products stood at 233 million tonne last year.
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However, the government has estimated a growth of 2.5% in the consumption of LPG, while demand for diesel is seen rising 3%.
As of November, the country has imported 31.9 million tonne of petroleum products against 44.6 MT in the last fiscal.
According to the International Energy Agency, India’s oil demand has been rising and the country is likely to be the second-biggest contributor to the global oil demand growth this year after China.
Recently, the Ministry of Petroleum and Natural Gas has approved the Oil and Natural Gas Corporation (ONGC) to set up a new unit to house its gas business and clean energy projects such as green hydrogen, as it looks to fast-track foray into new areas.
“The proposed name of the company is ‘ONGC Green Limited’ subject to approval of the Ministry of Corporate Affairs, Government of India,” the company had said.
Significantly, the ONGC has started oil production from its much-delayed flagship deep-sea project in Krishna Godavari basin in Bay of Bengal, helping reverse years of decline in output.
ONGC has started producing from the Cluster-2 project in KG-DWN-98/2 block and will slowly ramp up output.
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