IOC Chairman A S Sahney forecasts a 2035 peak for Indian gasoline demand, citing EV adoption and alternative fuels, while diesel and jet fuel remain key growth drivers for the refiner.
India's gasoline demand is projected to reach a saturation point by 2035 as the market shifts toward alternative energy sources. IOC Chairman A S Sahney explicitly noted that motor spirit is facing significant pressure from the adoption of electric vehicles, increased ethanol blending, and the transition to natural gas vehicles.
Demand is expected to peak by 2035.
As India's largest state-owned refiner, IOC faces a strategic pivot as its product mix shifts away from gasoline toward diesel and jet fuel. Chairman A S Sahney's comments highlight the company's awareness of the long-term structural decline in gasoline, necessitating a focus on high-growth segments to maintain profitability.
IOC is monitoring the shift in demand patterns, noting that while gasoline faces pressure, diesel and jet fuel remain key growth drivers for the company.
Diesel demand is expected to maintain a positive growth trajectory in India, supported by the country's expanding industrial sector. Unlike gasoline, diesel remains insulated from the immediate pressures of electrification and alternative fuel shifts mentioned by IOC leadership.
Diesel demand is set for continued growth driven by industrial activity.
The demand for jet fuel is anticipated to grow consistently, underpinned by the robust recovery and expansion of the Indian aviation sector. IOC leadership identifies this as a key growth area that contrasts with the stagnation expected in the gasoline market.
Growth is driven by the ongoing rise in air travel within India.
Indian Oil Corporation Chairman A S Sahney projects gasoline demand will plateau by 2035, driven by the rapid adoption of electric vehicles and increased ethanol blending. While gasoline faces long-term headwinds, the state-owned refiner expects sustained growth in diesel and jet fuel consumption, fueled by robust industrial activity and expanding air travel across the region.
The peak is driven by the transition toward electric vehicles, the increased use of natural gas-powered vehicles, and higher rates of ethanol blending in motor spirit.
Diesel and jet fuel are projected to maintain growth trajectories, supported by rising industrial output and the expansion of the aviation sector.