Economic recovery to stoke demand for petroleum products: A CRISIL analysis

After a drop of 9.3 per cent year-on-year (YoY) in the financial year 2021 (FY21), demand for petroleum products is estimated to grow 6-8 per cent YoY in FY22, supported by expected revival in demand across end-user industries, especially in personal mobility.

Demand is expected to increase further by 6-8 per cent in FY23, driven by healthy demand growth in the liquid petroleum gas (LPG) and naphtha segments.

Demand for petroleum products grew 7 per cent from April to November 2021. Recovery in demand had slowed in May and June because of the second wave of the pandemic that led to restrictions