In India, fuel demand reached a 24-year high in February 2023
According to experts, the demand for fuel in India in March 2023 will increase even more and is expected to reach 5.17 million barrels/day.
The demand for fuel in India increased in February 2023 by more than 5% compared to January, to 4.82 million barrels per day (18.5 million tons), which is the highest level in at least 24 recent years.
This was reported by the Ministry of Oil of India, the data from the report of which is cited by the Business Standard newspaper.
Demand growth was stimulated:
- Economic activity in India,
- High domestic consumption,
- Record imports of cheap Russian oil.
India, the 3rd largest importer of crude oil in the world after China and the United States. In 2022, Russia became the largest supplier of oil to India. The share of the Russian Federation in Indian crude oil imports exceeded 25%.
According to the Ministry of Trade and Industry of India, for 11 months of 2022, the supply of Russian crude oil increased 9.5 times and reached 19.7 billion US dollars, petroleum products – 5 times (2.5 billion US dollars), coal – 4 times (3.8 billion US dollars).
In addition, Russia and India are transferring more and more oil transactions to currencies alternative to the US dollar, in particular, to rubles and dirhams of the United Arab Emirates (UAE).