Oil product consumption in India was 21.3 MMT in May, an increase of 5.7% m-o-m and 1.1% y-o-y. Among the major products, the strongest growth was seen in gasoline consumption (9.7%), followed by naphtha (7.1%) and LPG (5.5%), m-o-m. Gasoline consumption has got a boost from summer travel demand in recent times.
However, over Jan-May 2025, oil products consumption in India has averaged 102 MMT, a fall of 0.8%, y-o-y. Among the major products, naphtha consumption has seen the sharpest decline (-13.6%) due to lower offtake by petrochemical plants. Bitumen consumption is also down by 6.3% over the same period as the government is prioritizing maintenance and upgrading existing road infrastructure over rapid expansion.
- India’s Index of Industrial Production (IIP) has grown at an average rate of 3.6% over Jan-Apr 2025, down from 5.1% over the same period in 2024. This trend points toward the pressure on Indian economy, emanating from weak domestic investment and heightened global uncertainty.
- World Bank in its latest update has also cut its growth projection for India to 6.3% in the current financial year 2025-26, down from the 6.7% it had projected in January 2025. Slowdown in India’s economy is keeping a check on oil products consumption.
Oil products production in India was robust in May to total 24.3 MMT, an increase of 8.4%, m-o-m and 1.0%, y-o-y. Among the major products, naphtha (8.6%), LPG (8.6%) and gasoil (8.1%) saw healthy growth, m-o-m.
Over Jan-May 2025, oil products production has totaled 118 MMT, an increase of 1.1% compared to the same period last year. Among the major products, the strongest growth has been seen in the production of gasoline (7.1%) and gasoil (3.4%), fueled by healthy domestic refinery runs.
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