India’s refining capacity expansion lags behind growth in fuel demand:

India’s refining capacity expansion lags behind growth in fuel demand:

Context:

• The slow-pace growth of India’s refining capacity

What is the current scenario?

• Growth in demand for oil products rising faster than refining capacity added
• There is no major expansion of refinery capacity except few brownfield projects
• India is a net importer of LPG, a fuel used for cooking and heating, and a net exporter of other products such as gasoline, jet fuel, and diesel.

What is the main reason behind the boost of demand for refinery products?

• India’s rising disposable income

What is the speculation?

• It is being speculated that India might be able to export fewer fuels in the next four years as the refining capacity has not been expanded