The world’s last wave of oil refining bets all about India
India is embarking on a capacity expansion of its oil refineries to meet the country’s rising thirst for fossil fuels. The building blitz aims to raise production of traditional transport fuels such as gasoline and diesel, which will increase India’s refining capacity by more than 20% over the next five years.
This boost comes at a time when the global refining industry is declining in the US and Europe, making India a rare exception. The slower adoption of electric vehicles in India and the country’s growing transport demand will keep the appetite for gasoline and diesel higher for longer.
Expansions in the West are non-existent, said Giovanni Serio, Vitol Group’s head of research. Expansions continue to be based in the areas where demand is growing. India is the one where we see the continuation of a trend of growth of over 200,000 barrels a day between now and the next four or five years..