India Set to Overhaul China as Biggest Driver of Oil Demand

India will soon surpass China as the global oil market’s biggest demand driver, the International Energy Agency’s chief predicted on Wednesday.

The Paris-based energy agency said in its outlook report that about three quarters of the 2022-28 demand growth increase will come from Asia, with India surpassing China as the main source of growth by 2027.

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“One of the reasons why we say this is that electrification of cars and buses in China is growing rapidly,” Birol told reporters on the sidelines of a G20 event in New Delhi.

“I very much hope India will move closer in terms of electrification.”

Birol also said that, since India has abundant renewable energy capacity, the country should not miss the opportunity to become a superpower in the green hydrogen business.

Reuters with additional editing by Sean O’Meara

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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.