Thursday, March 23rd, 2023

Will India decline the use of petrol by 2030?

India’s fuel (Petrol and Diesel) demand growth is seen shrinking

India’s Electric Vehicle (EV) market is growing faster and is having great demand. India’s fuel consumption growth is seen shrinking to 1.5% from nearly 5% by 2030 on the clean energy drive. India is the world’s fastest-growing fuel market and this drive is expected to reduce the country’s fuel demand growth by creating redundancy in India’s refining capacity expansion which is worth 1.5 Lakh crore.

The annual growth in consumption of Petrol and Diesel is dropping to 2.5% by 2030 after maintaining a growth rate of 4% till 2025. The fall in the growth rate of Petrol sales will be sharper. Petrol has clocked about 8% annual growth and Diesel about 4% so far.

Research shows a rapid raise and demand for Electric vehicle

The research group’s project shows a growth rate that exceeds even CEM’s (Customer Experience Management) target. Electric Vehicles account for 80% of two and three-wheelers sales, 70% of Taxi sales, 40% of bus sales, and 19% of private car sales by 2030. Fuel demand will increase up to 1.5 times by 2030. This will add 40 thousand new fuel outlets in 2026, of which as many as 30 thousand will still be needed in 2030.

The analysis says the expansion of CNG networks and the resultant rise in the number of CNG vehicles will drive down diesel consumption, while e-petrol and Electric Vehicles will displace petrol sales.50% of crude is consumed in India for making transportation fuels. Within Crude oil, Petrol and Diesel have a share of 14% to 39% respectively. Crude oil makes up 28% of India’s overall energy mix and is a large source of carbon emissions.

India’s state refiners, which dominate fuel retailers, plan to set up Electric Vehicle charging facilities at more than 22,000 fuel stations and highways by 2024. India will need to significantly scale up its Electric Vehicles ambitious to reduce its dependence on oil to power passenger road transport.

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