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India’s Petroleum Demand to Grow 5.37% Yearly Till 2030 – PHDCCI Report: Current Affairs & Competitive Exam Prep

India’s petroleum consumption is projected to grow at 5.37% annually until 2030, driven by industrial and transportation needs. Meanwhile, natural gas demand is expected to surge by 60%, reinforcing India’s shift toward cleaner energy.

Key Highlights from the PHDCCI Report

1. Petroleum Consumption on the Rise
India’s petroleum demand is expected to grow at a 5.37% CAGR from 2025 to 2030.
Major contributors include diesel, petrol, aviation fuel (ATF), and petroleum coke.
Economic growth (over 6% annually) and industrial expansion are key drivers.

2. Natural Gas Demand to Jump 60% by 2030
Consumption is projected to increase from 66 BCM/year to 103 BCM/year by 2030.
Growth will be led by City Gas Distribution (CGD), heavy industries, and manufacturing.
The government aims to raise natural gas’s share in the energy mix from 6% to 15% by 2030.

3. Challenges: High Import Dependency & Geopolitical Risks
Over 85% of India’s crude oil is imported, making it the third-largest oil importer globally.
Geopolitical tensions in Strait of Hormuz and Suez Canal could disrupt supply and prices.

4. Falling Crude Prices – A Temporary Relief?
Brent crude prices may drop from $81/barrel (2024) to $66/barrel (2026).
Increased non-OPEC+ production and slower demand growth contribute to this trend.

5. Domestic Production Trends
Crude oil output may rise to 48.5 MMT by FY 2026-27 but decline to 45.5 MMT by FY 2029-30 due to aging oil fields.
Natural gas production is expected to reach 54.7 BCM by FY 2029-30, supporting energy transition goals.

Sample Questions & Answers for Competitive Exams (SSC, PSC, Banking, etc.)
Q1. What is the projected annual growth rate of India’s petroleum consumption till 2030?
Ans: India’s petroleum demand is expected to grow at 5.37% CAGR from 2025 to 2030.
Q2. Which sectors are driving India’s natural gas demand growth?
Ans: The City Gas Distribution (CGD) network, heavy industries, and manufacturing sectors are key drivers.
Q3. Why is India vulnerable in terms of crude oil supply?
Ans: Because over 85% of its crude oil is imported, and geopolitical risks in the Strait of Hormuz and Suez Canal can disrupt supply.
Q4. What is the government’s target for natural gas in India’s energy mix by 2030?
Ans: The goal is to increase natural gas’s share from 6% to 15% by 2030.
Q5. Why are Brent crude prices expected to decline by 2026?
Ans: Due to higher non-OPEC+ production and slower global demand growth, prices may fall to $66/barrel by 2026.