It is reported that Mr. Dharmendra Pradhan Oil Minister said that India's diesel demand is likely to become twice to 163 million tonnes by 2029-30 as consumption rises in the world's fastest-growing economy. Mr. Pradhan said as per the International Energy Agency's World Energy Outlook 2018, the country's oil demand is projected to jump from 217 million tonnes in 2016 to 61% to 350 million tonnes of oil equivalent by 2030. India is the world's 3rd largest oil consumer.
Mr. Pradhan said that the country's Compound Annual Growth Rate (CAGR) of 3.47% in oil demand compares with 1.92% projected for China during the 2016-2030 periods. During this period, the US and Japan are likely to witness a contraction of demand, while Russia may just manage a positive growth with consumption rising to 154 million tonnes from 149 million tonnes.
He said that as per the report of a working group constituted by the Ministry of Petroleum and Natural Gas on enhancing refining capacity by 2040, the demand for petrol is likely to rise to 49 million tonnes in 2029-30, from 26.2 million tonnes in 2017-18. He added that for diesel, the demand is projected to grow to 163 million tonnes in 2029-30 from 81.1 million tonnes in 2017-18.
He further added that "The oil consumption in 2017 over 2015 grew on a compound average basis of 6%," adding that the rise in growth was mainly due to increasing economic and manufacturing activities, thrust on infrastructure spending, growth in disposable income leading to the higher purchase of automobiles and mechanization of agriculture.