Demand growth in petrol and diesel combined will likely decline to 1.5 per cent per annum this decade, compared with 4.9 per cent in the last, because of increasing blending of ethanol with petrol, and rising usage of vehicles powered by compressed natural gas (CNG) and electricity (EVs).
The trend will also be persuaded by policy interventions as India targets net zero emissions by 2070, a CRISIL research report said on Monday. Taking a cue, oil refiners would be altering their production mix in favour of alternatives such as petrochemicals, which should also support their profitability, the report said.
