India's Oil Consumption Keeps Rising as Country Prepares for Energy Transition

India's oil consumption continues to rise, making it the world's third-largest consumer. The country burns through approximately 5.99 million barrels of petroleum per day, a figure that shows no signs of plateauing anytime soon.

The International Energy Agency projects that India will be the single largest driver of global oil demand growth through 2030, accounting for more than one-third of the world's projected gains. This is in stark contrast to developed economies, which are either flattening or declining in oil consumption.

Diesel demand is expected to double to 163 million tonnes by 2029-30, driven by logistics, manufacturing, and agriculture. Meanwhile, petrol sales surged nearly 29% year-on-year in May 2026, but electric vehicle penetration has crossed the 10% threshold, indicating a structural shift towards EVs.

India's refining capacity is also noteworthy, with plans to nearly double its current capacity of 258.12 million metric tonnes per annum by 2030. The country captures value at multiple points in the supply chain, not just at the import stage, which reduces its vulnerability to oil price volatility.