India’s fuel demand is likely to grow by 7.3% in FY17 led by increased consumption of petrol and high speed diesel

India:   The fuel demand in India is likely to rise by 7.3% in FY17 with robust expansion in the consumption of petrol and diesel. Demand for Diesel grew by almost 7.5% to reach 74.6 million tonnes in FY15 which is projected to grow further by 7.7%, reaching 78.11 million tonnes by FY17. The consumption of petrol is expected to rise by 12.4%, which would reach 24.14 million tonnes by 2016-17 from 21.8 million tonnes in 2015-16. Narrowing the price between Diesel and Petrol has resulted in higher growth of petrol demand in comparison to diesel.

TechSci Research depicts that India is focusing on increasing the production of crude oil from various onshore and offshore field located within India in order to cater to the incremental demand of petroleum products. Government’s decision of auctioning 69 idle oil and gas fields of state-owned ONGC and Oil India to private companies on new revenue sharing model is expected to boost oil and gas E&P over the next five years, which in turn would fuel growth in the country’s oilfield services market through 2020. 

According to TechSci Research report, “India Oilfield Services Market Forecast & Opportunities, 2020”, the country’s oilfield services market is projected to surpass US$ 7.8 billion by 2020, on account of anticipated increase in oil and gas E&P activities. Growth in the market is anticipated on account of increasing oil & gas exploration and production activities in the country, aimed at reducing India’s dependence on oil imports. Oilfield services help smoothen the drilling process by eliminating the waste produced during drilling, and enhance the oil recovery process by providing repair and maintenance of bore wells.