Petrol, diesel demand growth to halve due to CNG, ethanol, EV push: Crisil

Refiners may need to trim capacity expansion plans

The demand growth for petrol and diesel is going to be severely impacted due to the push towards Compressed Natural Gas (CNG), ethanol blending, and electric vehicles.

According to Crisil Ratings, the demand growth in petrol and diesel combined will likely decline to 1.5 per cent annually this decade, compared with 4.9 per cent in the last.

“The trend will also be persuaded by policy interventions as India targets net zero emissions by 2070. Taking cue, oil refiners would be altering their production mix in favour of alternatives such as petrochemicals, which should also support their profitability,” the ratings agency