Fuel demand and car ownership modelling in India

Motorisation in Asia is soaring with rapid growth in incomes non-lin-early. Even though car ownership per 1,000 population is still low in countries like China, India or Indonesia, escalating number of cars is affected by GDP growth among other infrastructural factors in a non-linear manner. This quick growth in car ownership may represent a significant implication on road transport fuel demand. This paper forecasts the demand for road transport fuel in India. For this purpose, econometric models, based on time series data, are constructed as for a major factor affecting fuel demand in road transportation i.e. car ownership. Copyright 2007 Organization of the Petroleum Exporting Countries.