India is quickly becoming the main driver of global oil and gas demand. A new report by Moody’s says that over the next decade, India will grow faster than China in using oil and gas. This change is happening because India’s economy is growing fast, with more factories, better roads, and a rising middle class that needs more fuel for transport and daily life.
India’s oil demand is expected to rise sharply. The country may use 5.99 million barrels of oil per day by 2026, which is a big jump from 5.55 million in 2024. Diesel is a major reason for this increase, as more trucks and vehicles are needed for road and construction projects. Oil companies in India are also investing in refining to meet the growing need.
Natural gas is also becoming important in India’s energy plan. The government wants to raise its share from 6% today to 15% by 2030. Gas is used in industries like fertilisers and city gas systems. Demand is growing between 4% and 7% each year, though some problems like high prices and weak infrastructure are slowing progress.
India is also importing more oil, especially from Russia. In May 2025, India is expected to import 1.8 million barrels a day from Russia—the highest in 10 months. While China’s fuel demand is slowing due to more electric vehicles and a weaker economy, India’s energy needs are rising fast. This makes India a key player in the future of global oil and gas markets.
