Govt to reassess oil demand, refinery capacity projections
OIL & GAS

Govt to reassess oil demand, refinery capacity projections

The government has begun a reassessment of the country's future oil demand and refining capacity requirements as domestic consumption soars, planned refineries are delayed, and predictions of a quick end to the oil age prove exaggerated.

The petroleum planning and analysis cell of the oil ministry has been asked to prepare a fresh report on the future fuel demand and refining capacity needs, according to a report citing unnamed officials.

"In the early days of Covid or before that everyone seemed to believe that oil demand would quickly drop and give way to alternatives," the official said. "But that doesn't seem to be the case. So, we need to have the capacity to meet the demand that's expected to grow for years to come."

The International Energy Agency (IEA) expects global oil demand to surpass pre-Covid levels next year.

Domestic petrol and diesel demand have grown 23.4% and 17.5% respectively in the four months to July over the year earlier. The demand is 11% higher than the pre-Covid level for petrol and 2% lower for diesel. Overall demand for all refined products has risen 14% year-on-year in the April-July period. India is a net exporter of fuel but strong local demand has pushed up imports and reduced exports.

See also:
Chennai Petroleum, Indian Oil form JV to build refinery in TN
ONGC, Indian Oil to jointly bid for JBF Petrochemicals


The government has begun a reassessment of the country's future oil demand and refining capacity requirements as domestic consumption soars, planned refineries are delayed, and predictions of a quick end to the oil age prove exaggerated. The petroleum planning and analysis cell of the oil ministry has been asked to prepare a fresh report on the future fuel demand and refining capacity needs, according to a report citing unnamed officials. In the early days of Covid or before that everyone seemed to believe that oil demand would quickly drop and give way to alternatives, the official said. But that doesn't seem to be the case. So, we need to have the capacity to meet the demand that's expected to grow for years to come. The International Energy Agency (IEA) expects global oil demand to surpass pre-Covid levels next year. Domestic petrol and diesel demand have grown 23.4% and 17.5% respectively in the four months to July over the year earlier. The demand is 11% higher than the pre-Covid level for petrol and 2% lower for diesel. Overall demand for all refined products has risen 14% year-on-year in the April-July period. India is a net exporter of fuel but strong local demand has pushed up imports and reduced exports. See also: Chennai Petroleum, Indian Oil form JV to build refinery in TNONGC, Indian Oil to jointly bid for JBF Petrochemicals

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code