With Progressive industrialisation of the country and growth in GDP, the consumption of petroleum products in the country has also been steadily increasing at more than 7% during the VIII plan and the projected growth in POL products in IXth Plan is around 7% assuming a GDP growth of 6-7%.

From a level of 31MMT during 1980-81, the consumption of petroleum products is expected to be around 81 MMT in 1996-97. The same is expected to go up to 113 MMT in 2001-02 and will further rise to 155 MMT by 2006-07. The estimated demand for various petroleum products will be as follows: