Mumbai, Oct. 30 -- Indian gasoline demand is set to peak by 2035 as electric vehicles gain ground, ethanol blending expands and more cars shift to gas, according to A S Sahney, chairman of state-run refiner Indian Oil. He outlined the outlook at an industry event in Goa on Wednesday.
Sahney said motor spirit was facing pressure from several directions, making it an area of concern for the refining sector. The anticipated increase in electric vehicle adoption is expected to limit growth in petrol consumption, while continued ethanol blending will further affect demand for conventional gasoline.
The shift towards vehicles powered by gas is also likely to contribute to the change in the fuel mix. However, Sahney indicated that the broader energy demand outlook remained supported by other sectors, with diesel consumption expected to continue growing as industrial activity expands.
Jet fuel demand is also projected to rise, supported by the aviation sector. The contrasting trends mean refiners will need to manage a changing product mix, with transportation fuels developing at different rates across the Indian market.
Sahney also said demand for bottom-heavy products, including fuel oil and petroleum coke, would increase. These products currently account for 30 per cent of Indian Oil's refining yield, highlighting their importance to the company's operations as demand for gasoline faces longer-term pressure.
Separately, Indian Oil is evaluating technologies including small modular reactors. Sahney said the company's final decision would depend on whether the technology was commercially viable, indicating that the assessment remained focused on practical deployment and economic considerations.
Published by HT Digital Content Services with permission from Construction World.