Page 23 - Policy Economic Report - December 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Figure 17: Annual change in world liquid fuels consumption (2022-2025)

Source- US Energy Information Administration (EIA)

Driven by rising demand for transportation fuels and fuels for home cooking, consumption of liquid fuels
in India is forecast to increase by 220,000 b/d in 2024 and by 330,000 b/d in 2025.

It is forecasted that China’s liquid fuels consumption will grow by 90,000 b/d in 2024 before increasing by
250,000 b/d in 2025. In China, rapidly expanding electric vehicle ownership, rising use of liquefied natural
gas for trucking goods, a declining population, and decelerating economic growth have limited
consumption growth for transportation fuels. Most of the growth in China is the result of increasing oil
use for manufacturing petrochemicals.

Although India’s growth in percentage and volume terms exceeds China’s growth in the forecast, China
still consumes significantly more oil. Total consumption of liquid fuels in India was 5.3 million b/d in 2023,
while China consumed more than triple that amount at 16.4 million b/d in 2023.

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