India set for record oil demand on recovery from Covid washout

India, once the center of global oil demand growth, expects its fuel consumption to bounce back during the coming year as the nation recoups the losses caused by Covid-19.

Demand for gasoline, diesel and other fuels will reach a record 215.24 million tons in the 12 months through March 2022, according to estimates by the Petroleum Planning and Analysis Cell of India’s oil ministry. That’s almost a 10% rebound from the current year, which has been hit hard by the virus.

At one stage last year, India’s fuel consumption plunged by as much as 70%, led by the world’s biggest lockdown. The measures forced a sharp reduction in crude processing and imports, and helped drive a slump in international oil prices. On Thursday, the Organization of Petroleum Exporting Countries and allied nations will discuss how much crude to pump, and India is urging them to open the taps.