Indian Gasoline Demand Projected to Peak by 2035, Says Indian Oil Chairman

NEW DELHI — India's gasoline demand is projected to peak by 2035, according to A.S. Sahney, the chairman of state-run refiner Indian Oil Corporation (IOC). Speaking at an industry event on Wednesday, Sahney noted that gasoline, or motor spirit, faces downward pressure from multiple fronts.

The anticipated leveling off in demand is driven by the gradual market adoption of electric vehicles, ongoing efforts in ethanol blending, and an increase in the number of vehicles running on gas. "Motor spirit is feeling pressure from all sides, that's one area of concern," Sahney stated during the event.

In contrast to gasoline, the outlook for other petroleum products remains robust. Sahney indicated that consumption of diesel and jet fuel will continue to grow, supported by broader industrial expansion and the ongoing recovery and growth within the aviation sector.

Additionally, demand for bottom-heavy grades such as fuel oil and petcoke—which account for approximately 30 percent of the refiner's total refining yield—is also expected to rise in the coming period.

Apart from core fuel demand trends, Sahney shared updates on the company's exploratory technology initiatives. He noted that IOC is currently evaluating various technologies, including small modular reactors. However, he emphasized that any final decision regarding implementation will depend strictly on commercial viability.

"The projection by Indian Oil Corporation highlights a structural shift in India's energy consumption patterns. As electric vehicles gain traction and alternative fuels like ethanol and gas expand their footprint, traditional automotive fuel markets are entering a transition phase. For businesses and entrepreneurs in the automotive, energy, and EV infrastructure sectors, this transition signals both a challenge and a clear long-term direction. Strategic planning must account for the changing demand curve, especially as industrial and aviation fuel segments continue to grow." — Dr. Shishir Gupta, Founder & CEO, StartupLanes