India’s oil demand likely to jump 8% in 2022 – Times of India

NEW DELHI: India’s oil demand is projected to leap 8.2 per cent to five.15 million barrels per day in 2022 because the financial system continues to rebound from the devastation brought on by the pandemic.
The Group of Petroleum Exporting International locations (Opec) in its newest month-to-month oil market report projected the world’s third-biggest power client so as to add 0.39 million barrels per day (bpd) of crude oil demand in 2022.
India’s oil demand rose from 4.51 million barrels per day in 2020 to 4.76 million bpd in 2021, recording a 5.61 per cent progress.
However, this was beneath pre-pandemic ranges. Oil demand in 2018 was 4.98 million bpd, which rose to 4.99 million bpd within the following yr earlier than the pandemic struck.
“With anticipated sturdy financial progress of seven.2 per cent in 2022 and anticipated speedy containment of Omicron within the close to future, oil demand is anticipated to get well,” the OPEC report mentioned.
Mobility has continued to enhance, as common driving exercise in India elevated. Oil demand this yr has elevated as states relaxed COVID-19 restrictions in keeping with declines in new infections.
“Gasoline (petrol) and diesel are prone to be notably favoured by the anticipated rise in GDP and the already recovering mobility and consequently driving exercise,” it mentioned.
Equally, in keeping with a forecast for a strong financial system in 2022, the economic sector will present assist for diesel, LPG and naphtha necessities.
Jet kerosene demand enchancment is anticipated to be slower in 2022 due to journey challenges, notably business-related, it mentioned. “However, India is projected to develop by 0.4 million bpd year-on-year in 2022.”
The projection by OPEC is in keeping with the federal government estimates for gas demand progress. In line with the oil ministry’s Petroleum Planning and Evaluation Cell (PPAC), India’s gas demand is prone to develop 5.5 per cent within the fiscal yr starting April 1.
Gas consumption in 2022-23 is estimated to rise to 214.5 million tonnes (4.3 million bpd) from 203.2 million tonnes anticipated gross sales within the present fiscal yr ending March 2022.
Whereas the Opec projections are for crude oil demand, the PPAC forecast is for gas. Crude oil is transformed into gas akin to petrol and diesel at refineries and never the entire petroleum merchandise produced are consumed within the nation.
A major quantity of petroleum merchandise are additionally exported, leading to variance between crude oil and gas demand estimates.
“India’s crude imports averaged 4.5 million bpd in January, down round three per cent from the sturdy degree seen the month earlier than. February information is anticipated to point out larger crude imports, because the financial system beneficial properties momentum, demand picks up, and refiners boosted runs,” Opec report mentioned.
Imports make up for 85 per cent of India’s oil wants.
“When it comes to crude imports by supply, the most recent information for December exhibits Iraq persevering with to carry the highest place, with a share of 27 per cent.
“Saudi Arabia was second with round 17 per cent, adopted by the UAE with some 13 per cent, the latter seeing a soar in volumes. The US additionally noticed a robust enhance, rising to fourth place, with 9 per cent,” it added.
In line with PPAC, India’s gas demand will cross the pre-pandemic degree gross sales within the present fiscal. In 2019-20, India had consumed 214.1 million tonnes of petroleum merchandise akin to petrol, diesel and LPG.
Demand for petroleum merchandise grew by 4.2 per cent within the first 10 months of the present fiscal yr that started in April 2021. Gas consumption was 165.7 million tonnes in April 2021 to January 2022.
India consumed 194.3 million tonnes of petroleum produced in 2020-21, the yr that noticed a pandemic-related lockdown crippling financial system and mobility, and 214.1 million tonnes in 2019-20.

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