India¡¯s oil demand growth this year could tumble to its lowest level since the pandemic as the fallout from the Middle East conflict saps fuel consumption in the world¡¯s third-biggest crude importer.
Oil demand growth is forecast at 78,000 barrels a day, according to Kpler, which has slashed its pre-war estimate by almost 40%. Aside from?COVID-19-hit 2020, that would be the lowest in a decade. Another consultant, Rystad Energy, projects diesel demand growth will plummet to a trickle.
India is heavily reliant on imported crude and fuels, and the 51³Ô¹ÏÍø has led to surging energy prices that are squeezing state-run refiners and weighing on the broader economy. A weaker currency is compounding the pressure, and Indian Prime Minister Narendra Modi has urged people to save fuel by working from home, using public transport?and avoiding non-essential overseas travel.
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