India’s oil demand is expected to rise by about 0.06 million barrels per day (mb/d) in 2026 and accelerate further by 0.4 mb/d in 2027, driven by resilient economic growth and sustained demand for hydrocarbon fuels, the Organization of the Petroleum Exporting Countries (OPEC) said in its latest monthly report.

OPEC expects India’s oil demand to average 5.7 mb/d in 2026, up from the previous year, with gasoline and diesel consumption remaining elevated amid increased road mobility and higher vehicle sales.

India’s domestic growth momentum stayed resilient, supported by “robust domestic demand and strong services”, despite global trade uncertainties and geopolitical headwinds, OPEC said.

Diesel demand is expected to receive additional support from strong manufacturing and agricultural activity. Consumption of residual fuel and jet fuel/kerosene is also projected to increase marginally, while demand for LPG and naphtha could ease, OPEC said.

India’s oil demand is forecast to rise to around 6.1 mb/d in 2027, an increase of approximately 0.4 mb/d from 2026. OPEC attributed the expected growth to strong macroeconomic fundamentals, government support for households and the anticipated addition of new petrochemical capacity.

Global demand outlook trimmed

OPEC, however, lowered its forecast for global oil-demand growth from the previous month. It now expects global demand to increase by around 0.4 mb/d in 2026, before rebounding to growth of about 2.4 mb/d in 2027.