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India, China to contribute considerably to rise in oil demand

India, China to contribute considerably to rise in oil demand
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Prime Minister Manmohan Singh remarked that India and China may account for a major part of the increase in global demand for crude oil. He said this at the launch function of National Electric Mobility Mission Plan 2020.

In order to reduce transport sector’s dependence on oil, Singh emphasised on the need for development of electric and hybrid vehicles.

According to the International Energy Agency, 75 percent of the projected future increases in oil demand will be from the transport sector.

He remarked that rising oil import bill owing to the high prices in international markets was putting a “big strain” on the Indian economy. Today over 80 percent of India’s requirements of petroleum products is being imported. This dependence on imports is likely to increase, Singh said at function.

High international prices of oil contribute significantly to India’s import bills, to our trade deficit, and also if I may say so in the world of rising energy prices, to inflation, thus putting a big strain on our economy, he said.

One of the ways in which this can be achieved is by faster adoption of the full range of electric vehicle technologies, including hybrid vehicles. These technologies are not only more efficient but they are also cleaner, he said.

Singh pointed out that the transport sector accounted for nearly 30 percent of the world-wide consumption of energy. Of this, three-fourths come from road vehicles.

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