IEA predicts fuel demand in India to rise by 3.8% in 2012

The International Energy Agency (IEA) said in a recent report that fuel demand in India could rise by 3.8% to 132,000 barrels per day (bpd) or 3.6 million bpd in 2012. According to the IEA, “While the price increases should help offset revenue losses by refiners who have faced rising crude prices, the prices of the affected products remain regulated and the price hikes are likely not enough to significantly dent oil demand growth in the short term.” In particular, diesel fuel demand which makes up about 40% of the country’s fuel demand is expected to increase by 5.8% to 1.37 million bpd by the end of 2011 and increase to 1.44 million bpd in 2012. The agency also predicted that demand for gasoline by year-end will be 363,000 bpd and increase 6.7% to 388,000 bpd in 2012. (July 13, 2011)