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The International Energy Agency (IEA) in its latest report ‘Indian Oil Market Outlook to 2030’ has said that India will emerge as the largest source of global oil demand growth between now and 2030, signaling a significant shift in the dynamics of the global oil market.

According to the report, India’s pivotal role in driving global oil demand growth is underpinned by various factors, including urbanization, industrialization, and the burgeoning prosperity of the middle class. The country’s robust economic growth, coupled with demographic trends and rising aspirations for mobility and tourism, are expected to fuel the expansion of oil demand in India over the next decade.

The report projects that India’s oil demand is set to increase by almost 1.2 million barrels per day (mb/d), accounting for more than one-third of the projected 3.2 mb/d global gains by 2030. This surge in demand will propel India’s total oil consumption to 6.6 mb/d by 2030, solidifying its position as a key player in the global oil market.

It stated diesel/gasoil is identified as the primary driver of India’s oil demand growth, accounting for nearly half of the nation’s demand increase and more than one-sixth of total global oil demand growth through 2030. Additionally, jet-kerosene demand is poised for strong growth, albeit from a relatively low base, while gasoline demand will witness moderate growth due to the electrification of India’s vehicle fleet.