In August, India’s crude oil production experienced a decline of 3.4% compared to the previous year, reaching 2.4 million metric tons, which is equivalent to approximately 17.6 million barrels. This information comes from a report by the Economic Times, which also noted a slight decrease in fuel production.
The majority of the crude oil output for August was provided by the Oil and Natural Gas Corporation, a state-owned enterprise, contributing 1.6 million tons. Additionally, India’s crude oil processing saw a 1.9% decrease year-on-year, amounting to 21.5 million tons for the month.
Due to the drop in domestic production, India’s crude oil imports for August increased by 6.4%. This surge also led to a 3.3% rise in oil imports from April to August, aligning with the country’s expanding economy.
The cost of oil and gas imports for August also saw an increase, climbing from $9 billion in 2023 to $11.4 billion this year. The Indian Petroleum Ministry attributed this rise to higher imports of liquefied petroleum gas and lubricants.
India, the world’s third-largest importer of crude oil, depends on imports to meet over 85% of its petroleum needs, which are growing in tandem with its economic and refinery expansion.
Over the past two years, India has emerged as a significant purchaser of Russian oil, which is offered at a discount due to sanctions and embargoes on Russian crude exports to Western nations. This development is consistent with India’s sensitivity to oil prices.
According to Petroleum Minister Hardeep Puri, India is poised to account for 35% of the future increase in global energy demand. Speaking at the Gastech conference in Houston, Puri highlighted that India’s demand is growing at a rate three times faster than the global average.
Furthermore, Puri expressed confidence in India’s ability to manage and succeed in the energy transition. “We will manage and succeed…on the green transition,” he stated, adding that this is the aspect he is most satisfied with.
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