+
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
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code