Key facts
- Gasoline demand in India may peak by 2035.
- Increased ethanol blending and use of EVs and natural gas vehicles are driving the projected peak.
- Demand for diesel and jet fuel is expected to grow.
- India's refining capacity is set to increase to 6.4 million bpd by 2032.
India's gasoline demand is projected to reach its peak by 2035, influenced by rising ethanol blending and the increasing adoption of electric and natural gas vehicles, according to A S Sahney, chairman of Indian Oil Corporation (IOC). Sahney stated that gasoline demand is facing pressure from multiple sides, while demand for diesel and jet fuel is expected to grow due to increased industrial activity and air travel. India has been seeking to enhance its energy security by boosting biofuel production and consumption, particularly in light of soaring crude oil prices and its reliance on Middle Eastern imports. The country launched a new fuel blend with an 85% ethanol component in June as part of its fuel flex mobility program. Indian refiners are also expanding their capacity, with current capacity at approximately 5.36 million barrels per day, projected to reach 6.4 million bpd by 2032.