India, 30/12/2024: India is closing 2024 with its oil demand growing faster than China’s, a trend expected to continue in 2025, according to S&P Global Commodity Insights. India has become one of the world’s fastest-growing fuel consumers. This rising demand is pushing Indian oil companies to expand their refining capacity and explore new sources of crude oil. Experts say India’s oil demand will peak much later than China’s, making it a key focus for global energy players.
In 2025, India’s oil demand is expected to grow by 3.2%, compared to China’s 1.7%, according to S&P Global. Data shows that during the first ten months of 2024, India’s demand rose by 180,000 barrels per day, or 3.2% year-over-year, while China’s increased by 148,000 barrels per day, or 0.9%. This steady growth in fuel consumption is also driving India to boost its refining capacity to meet future needs.
To reduce its heavy reliance on a few suppliers, India is working to diversify its oil imports. Recent efforts include strengthening ties with countries in Africa and Latin America to secure more crude oil. However, the actual volume of imports will depend on global market conditions. India currently imports over 80% of its crude oil from regions like the Middle East, Africa, Europe, and the Americas.
The Indian government is also introducing new policies to increase domestic oil production. Recent reforms include allowing more exploration of resources like shale oil, shale gas, and coal bed methane. The removal of windfall taxes on locally produced crude and new legislation to update oil exploration laws aim to attract private and international investments in the energy sector. These steps are part of India’s broader strategy to reduce its import dependence and strengthen its energy security.
