Commodities price reporting agency S&P Global Platts has estimated that India would become the next big growth centre for oil on the fact that demand for most oil products hit record highs in 2015 and the current rising momentum of demand for cleaner cooking gas or LPG.
"For most of last year, demand has seen average of 10 per cent growth. Demand for most oil products hit record highs," the Amercican agency said in a report.
"Market observers expect gasoline and gasoil to recover to levels closer to double digits in the second half of the year," said S&P Platts Oil News and Analysis Editor Sambit Mohanty.
"In addition, the policy move last month lifting salaries of government employees could boost car demand, which in turn could lift gasoline consumption," he said
In the meantime, LPG has "added a silver lining" to the Indian growth story," the report said.
"A raft of government steps to promote clean fuels lifted LPG demand to record highs in March. And the momentum continues. We saw demand growing by 9 per cent in June and around 10 per cent in the first half," Mohanty added.
The report noted that the government has plans to provide more subsidies for 50 million new LPG connections for lower income families.