SRINAGAR: India’s dependence on imported crude oil has remained high at around 88 per cent over the past three fiscal years, the Ministry of Petroleum and Natural Gas informed the Rajya Sabha today. The figures, shared in response to questions on crude oil production, reserves, import dependence, LPG shortages, and fuel pricing, underline the country’s increasing reliance on global energy markets.
According to data from the Petroleum Planning and Analysis Cell, crude import dependence, measured on Petroleum, Oil and Lubricant consumption basis, has been broadly stable at approximately 88 per cent for the financial years 2023–24, 2024–25 and 2025–26. India, now the fourth largest economy and the third largest energy consumer globally, is expected to contribute between 20 and 30 per cent of incremental global energy demand growth by 2050. Current crude consumption stands at around 5.5 million barrels per day, projected to rise to 10.5 million barrels per day over the coming decades.
Domestic crude oil production has declined from 37.46 million metric tonnes in 2014-15 to 28.70 million metric tonnes in 2024-25. The decline is primarily due to natural production drops in ageing fields such as Mumbai High and fields in Assam, which have been in production for several decades and have passed their plateau production phase. Geological and operational challenges, including increasing water cut, sand ingress, limited reservoir influx, and subsurface complexities, have further restricted the effectiveness of drilling and infill operations, impacting overall yield.
Crude oil and gas production over the last five years show a decline in crude oil from 30.5 million metric tonnes in 2020-21 to 28.7 million metric tonnes in 2024-25, while gas production increased from 28,672 million standard cubic metres to 36,113 million standard cubic metres during the same period. Proven and probable crude reserves have also decreased from 475.3 million metric tonnes in 2021 to 423.1 million metric tonnes in 2025. Oil and gas public sector enterprises now source crude from 41 countries, including the United States, Nigeria, Angola, Canada, Colombia, Brazil, and Mexico, in addition to traditional Middle Eastern suppliers, to mitigate geopolitical risks and ensure steady supply.
India’s strategic petroleum reserves, managed through Indian Strategic Petroleum Reserve Limited, have a total capacity of 5.33 million metric tonnes in Andhra Pradesh and Karnataka, while the country’s overall crude storage, including Oil Marketing Company facilities, covers 74 days of consumption. These reserves act as a buffer against short-term supply shocks and are dynamically managed based on consumption and stocks.
In the LPG sector, India imports around 60 per cent of its requirement, with about 90 per cent transiting through the Strait of Hormuz. Geopolitical developments in West Asia have affected availability, leading to localized shortages, including in the state of Uttar Pradesh. The government has prioritized domestic LPG consumption while gradually restoring commercial supplies. Allocation to commercial users, initially at 20 per cent, has been increased to 70 per cent of pre-crisis levels, including 10 per cent linked to PNG expansion reforms. Priority has been given to restaurants, hotels, industrial canteens, food processing and dairy units, subsidised canteens run by states, community kitchens, hospitals, and educational institutions.
Retail prices of domestic LPG cylinders increased by Rs 60 to Rs 913 for a 14.2 kilogram cylinder in Delhi, effective March 7, 2026, while commercial cylinders rose by Rs 115 to Rs 1,883 for a 19 kilogram cylinder. Targeted subsidies for PMUY beneficiaries reduce the effective price of domestic LPG to Rs 613 per cylinder. Prices reflect international LPG benchmarks, exchange rate variations, and India’s import dependence. The government has provided compensation of Rs 22,000 crore in 2022-23 and approved another Rs 30,000 crore in 2025-26 to Oil Marketing Companies for under-recoveries on domestic LPG.
Petrol and diesel prices have largely remained stable over the past four years despite global crude volatility, with central excise duties periodically adjusted to shield consumers. Recent reductions of Rs 10 per litre in excise duties on both petrol and diesel aim to protect the public from international price fluctuations arising from Middle East tensions. Unlike neighboring countries, India has seen minimal change in retail fuel prices between February 2022 and February 2026, with petrol prices in Delhi declining by 0.67 per cent over the period.
