Cleaner fuel may mean 60-mt loss of demand by 2035: CRISIL report

In 2017-18, India's petrol consumption was at 26.2 million tonnes and diesel was 81.1 million tonnes

The country’s attempts to use cleaner fuel in the long term may translate into a 55-60 million tonne loss of fuel demand for refiners by 2035, a CRISIL report suggests.

As demand growth may saturate by 2030, higher exposure to petroch­emicals instead of fuel may be the way forward. Refiners may explore exports to neighbouring countries as an option but that could offer limited benefits.

“By 2035, we expect nearly 55-60 million tonnes of loss in fuel demand owing to penetration of electric vehicles and improvements in vehicle efficiency,” CRISIL said in a note shared with Business Standard. The rating