India Oil Demand Growth Slashed 39% to 77k bpd After Price Hikes

India’s 2026 oil-demand growth forecasts have been sharply reduced following four retail fuel price hikes since mid-May that lifted gasoline 7.8% and diesel 8.6%. Kpler cut refined-product growth 39% to 77,000 bpd while Rystad trimmed diesel growth to just 4,000–5,000 bpd. The downgrades coincide with Petrobras’s 9.6% diesel price cut under a Brazilian subsidy scheme and China allowing teapot refiners to lower runs to 80% of last year’s levels. State OMCs still face ₹74,000–84,000 crore June-quarter losses with daily under-recoveries near ₹5.5 billion, while Brent trades near multi-week highs amid Middle East supply risks.