India’s demand for oil to rise 8 percent this year

2. June 2022

India’s demand for crude oil is expected to increase by 8.2 percent to 5.15 million barrels per day in 2022. This was the estimate of the Organization of the Petroleum Exporting Countries (OPEC) in its latest monthly report. Due to the recovery of the Indian economy, oil demand from the world’s third-largest energy consumer could increase by 0.39 million barrels per day this year, OPEC said. India’s oil consumption increased by 5.61 percent from 4.51 million barrels per day to 4.76 million barrels per day in 2020 – 2021. However, these figures are still lower than before the outbreak of the corona pandemic. In 2018, oil demand was reported at 4.98 million barrels per day, rising to 4.99 million barrels in the following year, 2019. Most equipment, plants and facilities used in oil processing, transport, etc. must undergo mandatory PESO certification.

According to the OPEC report, oil demand in India will stabilize in 2022 due to economic growth of 7.2 percent. Traffic in India and average traffic activity is increasing due to Corona restrictions being removed. Gasoline and diesel will benefit the most from the increase in GDP, the report said. Increasing industrial activity will also demand diesel, liquefied petroleum gas and naphtha, it said. Kerosene demand, on the other hand, will increase only slightly as business travel remains subdued. Nevertheless, OPEC projects a year-on-year increase of 0.4 million barrels per day in 2022.

OPEC’s estimate is broadly in line with the Indian government’s forecast for this year’s oil demand. The Oil Ministry’s Planning and Analysis Unit projects a 5.5 percent increase in the current fiscal year, which began April 1. About 85 percent of India’s crude oil is imported. Iraq remains the largest trading partner at 27 percent, followed by Saudi Arabia at 17 percent and the United Arab Emirates at 13 percent. Imports of crude oil from the U.S. saw a sharp increase and now rank fourth at nine percent.

With the projected increase in demand for oil to pre-pandemic levels, the demand for imported products from the oil industry is also expected to increase. Therefore, the Indian oil and gas industry offers good opportunities for their company to provide services and products there or to manufacture locally.
Certification relevant product groups or components in the oil and gas industry are, for example, gas and pressure vessels, valves and fittings, or safety equipment. You can find an overview on the page about PESO relevant components.

If you are interested in understanding the PESO certification requirements for your product regarding import into India, please do not hesitate to contact us by email or phone (Europe: +49-69-271 37 69 261, US: +1 773 654-2673). There is no cost or obligation for us to check for you. If a certification need is discovered we can provide a quotation to make sure that all your certification needs are covered.
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