LONDON: India’s gasoline consumption is surging and has become one of the fastest-growing components of global oil demand.
With other parts of the global economy struggling, continued growth in gasoline consumption in India, together with the US and China, has become one of the most important indicators for global oil prices.
Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries are relying on India’s continued consumption growth to help absorb excess crude supply and rebalance the oil market in 2016/17.
India’s drivers used 500,000 barrels per day of motor spirit in the 12 months ending in February 2016, according to the Petroleum Planning and Analysis Cell of the Ministry of Petroleum.
Gasoline consumption rose by more than 60,000 bpd in 2015 compared with an increase of 240,000 bpd in the (much larger) US market.
Gasoline still accounts for a relatively small share, about 12 percent, of refined petroleum products consumed in India. The corresponding figure for the United States is 47 percent.
But gasoline consumption has been growing much faster than petroleum demand as a whole as the country becomes more affluent and the expanding urban middle class become car owners.
Gasoline consumption has grown at a compound annual rate of 11 percent over the last five years compared with 5 percent for other products.
Gasoline consumption growth surged to around 14 percent over the last year compared with 9 percent for other products.
Gasoline consumption has doubled since the start of 2009 and quadrupled since 1999, according to India’s Central Statistics Office.
India’s growing number of drivers provided the third-largest increase in gasoline consumption anywhere in the world last year after the US and China.
The Ministry of Petroleum predicts gasoline consumption will increase further to almost 800,000 bpd by 2021/2022.
Since actual consumption is already running ahead of the five-year plan the eventual outturn could be higher.
Sales of passenger cars and utility vehicles are expected to grow by as much as 12 percent in 2016/17 up from 6 percent in 2015/16, which translates to around 230,000 new vehicles hitting the roads every month.
The government plans to spend around $14 billion in the next fiscal year upgrading the country’s road network.
Consumption of other fuels and lubricants is also growing, although not as fast as the super-charged gasoline market.
India’s total petroleum consumption has increased by around 340,000 bpd over the last year, with gasoline accounting for more than 18 percent of the increase.
India’s fuel markets have become one of the most important sources of global oil demand growth.
India accounted for more than one barrel in every six of extra oil demand reported in 2015, according to estimates prepared by the International Energy Agency.
Total consumption of petroleum products has doubled from 2 million bpd in 1998/99 to almost 4 million bpd in 2015/16.
India’s oil ministry predicts consumption will hit 5.4 million bpd by 2021/22.
— John Kemp is a Reuters market analyst. The views expressed are his own.
India’s thirst for gasoline helps spur global oil demand
India’s thirst for gasoline helps spur global oil demand
PIF-backed AviLease achieves revenue of $664m and 19% growth in 2025
RIYADH: Saudi Arabia’s Public Investment Fund-backed AviLease achieved exceptional performance and sustainable business growth during 2025, supported by the strategic expansion of its global platform.
According to its financial results for 2025, AviLease recorded total revenues of $664 million, an annual increase of 19 percent, driven by disciplined growth in its asset portfolio and strong performance in aircraft remarketing amid sustained global demand for modern, fuel-efficient aircraft, the Saudi Press Agency reported.
Profit before tax doubled compared to the previous year, reaching $122 million. The year witnessed an expansion in AviLease’s portfolio, reaching 202 owned and managed aircraft, leased to over 50 airline companies in more than 30 countries.
The total value of the company’s assets stabilized at $9.3 billion. AviLease maintained a 100 percent fleet utilization rate, reflecting the resilience of its business model, the efficiency of its asset management, and the strength of its strategic relationships with airlines around the world.
AviLease concluded purchase agreements for aircraft from Airbus, including the A320neo family and A350F, and Boeing 737 aircraft, aiming to enhance its future asset portfolio with modern, fuel-efficient aircraft. This step will contribute to supporting future growth and meeting increasing customer demand for the latest aircraft, aligning with the Kingdom’s ambitions to become a leading global aviation hub.
AviLease strengthened its prestigious credit standing by obtaining a strong Baa2 credit ratings from Moody’s and BBB from Fitch, reflecting its financial solidity, managerial discipline, and efficiency in managing leverage. The company also successfully issued senior unsecured bonds worth $850 million last November under Regulation 144A/RegS. This issuance contributed to diversifying its funding sources and enhancing its financial flexibility.
Commenting on the results, AviLease CEO Edward O’Byrne said: “This exceptional performance reflects the quality of the company’s investment portfolio, the strength of its partnerships with airlines, and its strategic focus on responsibly deploying capital into highly sought-after, efficient, modern aircraft assets.”
He added: “As aviation markets continue to grow, AviLease is strategically positioned to continue its expansion plans and deliver sustainable long-term value for shareholders, contributing to the Kingdom’s ambitions.”
Throughout 2025, AviLease continued to play a pivotal role in the Kingdom’s growing aviation sector and contributed directly to the launch and scaling of the new national carrier, Riyadh Air, by completing a sale and leaseback transaction for a Boeing 787-9 aircraft, which thereby became the first aircraft to join the airline’s fleet.
AviLease also established a strategic partnership with Hassana Investment Co. This partnership aims to provide an opportunity for local and international investors to enter the aircraft financing asset class and benefit from AviLease’s technical expertise and operational capabilities to support partnership growth and enhance performance.
Hassana Investment Co. has agreed to acquire an initial portfolio of 10 modern aircraft from AviLease.
