India’s crude oil imports surged in January, reaching a 21-month high, driven by heightened demand fuelled by robust industrial activity. According to the Petroleum Planning and Analysis Cell (PPAC), crude oil imports for the month escalated by 9.5% compared to the previous month, totalling 21.39 million metric tons, marking a 5.7% increase on a year-on-year basis.
This uptick in crude oil imports can be attributed to India’s escalating fuel consumption, which witnessed an 8.2% year-on-year growth in January. The manufacturing sector in India exhibited notable improvement at the beginning of 2024, with factory activity expanding at its swiftest pace in four months. Simultaneously, the automotive industry reported record-breaking sales for the same period.
Furthermore, data from the PPAC website revealed that imports of crude oil products rose by 5% from the previous year to 3.97 million tons in January.
India is poised to be a key driver of global oil demand growth between 2023 and 2030, narrowly surpassing China, according to the International Energy Agency. Notably, in January, Saudi Arabia, the top oil exporter, reduced the February price of its flagship Arab Light crude to Asian customers, marking the lowest level in 27 months.
