India emerged as the world’s largest single source of oil demand growth in 2024 and maintains that position heading into 2026, driven by rapid economic expansion, urbanization, and growing transportation needs.
India’s oil consumption grew 3.4% in 2024, making it the top contributor to global demand growth, according to the International Energy Agency’s Global Energy Review 2025. The growth far outpaced other major economies as China’s demand expansion stalled and developed nations saw continued declines.
OPEC projects India’s oil consumption rose to 5.55 million barrels per day in 2024 and will climb to 5.74 million this year — a 3.4% increase. The oil cartel forecasts demand will reach 5.99 million barrels daily by 2026, growth that doubles China’s projected rate.
OPEC cited India’s continued economic expansion and strong momentum driven by consumer spending, business investment, and public sector support for key industries.
Diesel and gasoil dominate India’s consumption growth, representing the primary fuel category as the country undergoes large-scale industrialization. Growing demand for transportation fuels, expanding manufacturing operations, and government infrastructure projects propel consumption upward.
The IEA’s Oil 2025 report projects India will add 1 million barrels per day by 2030 — the largest increase of any single country and accounting for more than one-third of global oil demand gains through the end of the decade. India holds third place globally in oil consumption, trailing only the United States and China.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
