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Business
India's Fuel Demand Projected to Rise Until 2034 Even as EVs Gain Ground
✍️ Business Standard
🗓 14 Nov 2026, 07:04 AM
👁 24
Analysts say India's overall fuel consumption will continue to grow through 2034, outpacing the impact of electric‑vehicle adoption.
India's total demand for petroleum products is expected to keep climbing at least until 2034, according to a recent Business Standard analysis. The forecast takes into account the country's expanding economy and the steady rise in the number of road vehicles.
While electric‑vehicle (EV) sales are picking up, their market share remains modest compared with the overall vehicle fleet. Analysts note that the pace of EV adoption, constrained by charging infrastructure and price sensitivity, is insufficient to offset the growth in fuel consumption driven by conventional cars, trucks and two‑wheelers.
The report highlights that rising disposable incomes, urbanisation and freight movement are key drivers of higher fuel use. Even as policy pushes for cleaner mobility, the underlying demand for gasoline, diesel and aviation fuel is projected to stay on an upward trajectory.
Policy makers and oil companies are therefore urged to plan for sustained import volumes and refinery utilisation, while simultaneously accelerating EV incentives and infrastructure development to gradually reshape the energy mix.
While electric‑vehicle (EV) sales are picking up, their market share remains modest compared with the overall vehicle fleet. Analysts note that the pace of EV adoption, constrained by charging infrastructure and price sensitivity, is insufficient to offset the growth in fuel consumption driven by conventional cars, trucks and two‑wheelers.
The report highlights that rising disposable incomes, urbanisation and freight movement are key drivers of higher fuel use. Even as policy pushes for cleaner mobility, the underlying demand for gasoline, diesel and aviation fuel is projected to stay on an upward trajectory.
Policy makers and oil companies are therefore urged to plan for sustained import volumes and refinery utilisation, while simultaneously accelerating EV incentives and infrastructure development to gradually reshape the energy mix.