The majority of the crude output for August was contributed by the Oil and Natural Gas Corporation, the state-owned entity, which produced 1.6 million tons. Additionally, crude oil processing in India fell by 1.9% year-on-year, reaching 21.5 million tons.
Due to the reduction in domestic production, crude oil imports to India surged by 6.4% in August, contributing to a 3.3% rise in oil imports from April to August, in line with the country's economic growth.
The cost of oil and gas imports in August also increased compared to the previous year, rising from $9 billion in 2023 to $11.4 billion this year. According to the Indian Petroleum Ministry, this rise was primarily attributed to higher imports of liquefied petroleum gas and lubricants.
As the world's third-largest crude oil importer, India depends on imports for over 85% of its petroleum needs, which are expanding alongside economic growth and refinery development plans.
In recent years, India has emerged as a significant purchaser of Russian oil, which is available at discounted rates due to sanctions and embargoes affecting Russian crude exports to Western nations. Given India's sensitivity to oil prices, this trend was anticipated.
According to Petroleum Minister Hardeep Puri, India is projected to account for 35% of future energy demand. At the Gastech conference in Houston this month, Puri stated, "If global demand is increasing by one percent, ours is increasing by three times that. In the next two decades, 35% of the increase in global demand will originate from India."
Simultaneously, the minister emphasized India's commitment to a successful energy transition. "We will manage and succeed…on the green transition," Puri remarked. "That’s the aspect with which I am most satisfied."