World Oil Demand
OPEC Monthly Oil Market Report – November 2017
Indian oil demand
show solid y-o-y gains in September 2017 following a weak y-o-y performance in August.
Oil demand growth climbed by 0.42 mb/d, or a staggering 10.0%, to reach 4.70 mb/d, as compared to a year
In terms of products, the strong rebound in diesel oil consumption, which rose by 0.25 mb/d, or 17%, y-o-y,
supported by automotive diesel, was the major factor behind the overall solid growth during the month.
Commercial vehicle sales grew more than 25% y-o-y in September, marking the highest rate of growth since
the end of 2011 lending support to diesel oil demand. This came despite easing construction activities and
floods in many areas of the country.
Gasoline demand also grew in September,
following broadly flat y-o-y data in the previous
month. The product rose by around 0.10 mb/d, or
18%, y-o-y to stand at 0.65 mb/d. Passenger
vehicle sales increased by more than 11%, with
SUV sales increasing by more than 26% and total
car sales rising by around 7% y-o-y. Two-wheeler
sales, which consume gasoline as fuel of choice,
increased by 9% y-o-y, supported by a recovery in
sales from rural areas.
LPG continued to grow, rising by 31 tb/d y-o-y with
total consumption at record levels of 0.83 mb/d.
Housing demand continues to support Indian LPG
demand, despite government efforts to reduce
subsidies, which is anticipated to cap LPG demand
growth in the future.
Graph 4 - 9:Indian gasoline demand,
For the remainder of 2017, India is expected to be the main contributor to growth in the Other Asian region,
however, the impact of the Goods and Services Tax (GST) is expected to moderate demand growth,
particularly diesel in the construction sector. On the other hand, LPG in India, followed by middle distillates in
other countries in the region, will be the products leading oil demand in the region.
In 2018, better development in economic conditions y-o-y combined with the low base line of comparison
should act as positive factors to oil demand growth in India in 2018.
Table 4 - 6: Indian oil demand*, tb/d
Sources: OPEC Secretariat, and Petroleum Planning and
Analysis Cell of India.
Sources: JODI, Petroleum Planning and Analysis Cell of India and OPEC Secretariat.