Home » India’s oil demand growth rate to eclipse China’s

India’s oil demand growth rate to eclipse China’s

India’s oil demand growth rate to eclipse China’s
Shares

Oil consumption in India is expected to be 7-8 per cent this year, outpacing China’s demand growth for the third consecutive year, as impact of demonetisation is likely to be short-lived, according to Platts.

LPG and transport fuels demand will rise, while new petrochemical projects would be a boon for naphtha demand.

“The dramatic rise in India’s oil demand shows no signs of faltering; the country will remain a driver of Asian growth in 2017,” Platts Analytics said in a note.

The cash crunch following demonetisation is expected to “temporarily dampen the country’s appetite for oil products in the first quarter, or maybe a little longer,” it said.

“But gains in oil demand that the country is set to achieve from the ‘Make in India’ initiative — which aims to raise the share of manufacturing in GDP over the next few years — will more than offset the negative effects of demonetisation,” Platts quoted analysts as saying.

Leave a Reply