New Delhi, May 23 – India’s energy consumption, particularly in oil and petrochemicals, is projected to rise significantly over the next ten years, ed by robust economic growth and increasing consumer demand, according to a recent report from S&P Global Commodity Insights.
The country’s oil demand is expected to grow at a compound annual rate of 4%, driven largely by domestic consumption. Daily oil use in India is forecasted to reach approximately 4.8 million barrels per day (mbpd) in 2025—an increase of 4.3% compared to the previous year. For the current year, India’s crude oil requirement stands at around 5.4 mbpd.
Despite rising domestic demand, global oil prices have softened in 2025 due to sluggish international demand and increased production from OPEC+ and other suppliers. Pulkit Agrawal, head of cross-commodities content for India at S&P Global, noted, “India’s growing population and expanding economy are key drivers of its energy needs. The country is becoming a significant player in global oil demand, although its overall impact on the international market is still relatively limited.”
Strategic Energy Sourcing and Market Trends
India’s oil sourcing patterns are also evolving, with Russian imports continuing steadily into a fourth consecutive year. This shift highlights India’s strategic flexibility in securing energy resources amid ongoing global uncertainties.
In the petrochemicals sector, demand is projected to outpace GDP growth in the 2025–26 fiscal year, according to Stuti Chawla, Associate Director for Chemical Pricing in India and the Middle East at S&P Global. “Although concerns over tariffs and weaker urban consumption have led to inventory build-ups, India’s overall petrochemical demand is expected to sur the pace of economic growth,” she said.
She further emphasized that global producers, facing challenges such as falling margins, trade uncertainties, and overcapacity, increasingly see India as a vital growth market. “India is emerging as a critical demand hub in a global landscape marked by weak consumption and volatile trade conditions,” Chawla added.
