Analysts reduce India’s 2024 fuel demand growth estimates by up to 90% due to supply constraints and higher prices.
India’s oil demand growth for 2024 is set to slow to its weakest pace since the Covid pandemic, as supply shortages and elevated fuel prices curb gasoline and diesel consumption. Analysts at Kpler and Rystad Energy have slashed their growth forecasts by 30% to 90%, citing deteriorating market conditions in the world’s third-largest crude importer.
Earlier projections had anticipated stronger demand recovery, but revised estimates now align with pandemic-era lows. The downgrades reflect persistent supply chain disruptions and retail fuel costs that remain above pre-pandemic levels, dampening consumption.
Despite the sharp revisions, analysts do not expect a full-year contraction, though the outlook remains subdued for the remainder of 2024.