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India fuel demand growth forecast slashed 39% on price hikes
India's fuel demand growth forecast for 2026 has been slashed by 39% to about 78,000 barrels per day, down from an earlier estimate of 128,000 barrels per day, according to a Kpler…
The Story in Brief
India's fuel demand growth forecast for 2026 has been slashed by 39% to about 78,000 barrels per day, down from an earlier estimate of 128,000 barrels per day, according to a Kpler report. The revision comes as the government raised petrol and diesel prices by roughly Rs 5 per litre since May 15, alongside conservation appeals, while the rupee weakened 10% against the dollar over the past year. Petrol demand growth was cut 40%, diesel by about 20,000 barrels per day, and jet fuel by nearly half.
The Indian Opinion
The government celebrates keeping domestic petrol price rise to 8.1% since 2021, yet the Kpler report slashes demand growth by 39%. This disconnect shows the narrative of shielding consumers masks a fragile reality: fuel price hikes since May have outpaced household budgets, and the rupee's 10% depreciation against the dollar this year is squeezing imports. The real test will be whether the planned 20% ethanol blending target by 2030 can meaningfully cut oil imports, or if these conservation pleas are just band-aids on a structural addiction to crude.
Sources (2): millenniumpost.in, hindustantimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
